Meta is diving back into the crypto world, but this time, it’s taking a different approach. Forget building its own digital currency – the focus is on using existing stablecoins for small payments on platforms like Instagram.
A New Strategy
Meta’s previous attempt, the Diem project (formerly Libra), failed due to regulatory hurdles. But with new leadership and a more cautious strategy, they’re exploring stablecoins as a way to facilitate payments, especially for creators and businesses. Ginger Baker, Meta’s new VP of Product, is leading the charge. She has a strong background in fintech and crypto, which is shaping Meta’s new direction.
Stablecoins: A Solution for Small Payments?
The idea is to use stablecoins like USDC and USDT to send small payments, especially internationally. Think about Instagram influencers who receive payments around $100 at a time. Traditional bank transfers eat into those profits with high fees. Stablecoins offer a faster, cheaper alternative. Meta hasn’t committed to a single stablecoin yet; they’re considering using different ones depending on location and needs.
Not Alone in the Stablecoin Game
Meta isn’t the only big player interested in stablecoins. Companies like Stripe, Visa, Fidelity, and Ripple are all involved. The stablecoin market is booming, with over $230 billion currently in circulation, and projections reaching $2 trillion by 2028. It’s a huge opportunity, and Meta wants a piece of the action.
