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After the significant setback of its Diem (formerly Libra) stablecoin project, which was shut down in early 2022 due to intense regulatory pressure, Meta (formerly Facebook) is reportedly exploring a renewed, albeit more cautious, approach to stablecoins and cryptocurrencies.
Here’s a breakdown of their current efforts:
Stablecoins:
* Focus on Payouts: Meta is reportedly in discussions with various crypto firms to explore using existing stablecoins for cross-border payouts, particularly to creators on platforms like Instagram. The goal is to reduce fees and improve efficiency compared to traditional fiat currency transfers.
* Agnostic Approach: Unlike the Diem project where Meta aimed to create its own stablecoin, their current strategy seems to be more “stablecoin-agnostic,” meaning they are open to using a range of popular stablecoins (like USDC or USDT) rather than developing their own.
* Not a Proprietary Stablecoin: Meta has explicitly stated that the Diem project is “dead” and they are not developing a new Meta-branded stablecoin. Their interest lies in leveraging existing stablecoin infrastructure for specific use cases.
* Digital Wallet Importance: While not developing the stablecoin itself, Meta’s digital wallet, which was initially intended for Diem, will likely be crucial for consumers to store, send, and receive stablecoins if these initiatives move forward.
* Shifting Regulatory Landscape: Meta’s renewed interest comes at a time when the regulatory environment for stablecoins in the U.S. is perceived to be becoming more favorable, and stablecoins are gaining wider acceptance in the mainstream financial sector.
Cryptocurrencies (Broader Initiatives):
* “Zuck Bucks” (Unconfirmed): There have been reports about Meta exploring the creation of a new virtual currency, internally dubbed “Zuck Bucks,” potentially for use within the metaverse. However, details are scarce and its nature (whether it’s a stablecoin, social token, etc.) is not entirely clear.
* Social and Creator Tokens: Meta is also reportedly looking into issuing its own “social tokens” (representing a share in a group or community) and “creator coins” (for influencers or popular pages).
* NFTs: Mark Zuckerberg has previously stated that Non-Fungible Tokens (NFTs) are on the roadmap for Instagram, including user creation and potentially Meta issuing its own NFTs.
* Move Programming Language Legacy: While the Diem project failed, the custom programming language Meta developed for it, “Move,” has found a new life and is being used by other blockchain ecosystems and decentralized applications.
* Shareholder Pressure for Bitcoin: A conservative think tank has urged Meta to consider adding Bitcoin to its corporate reserves as part of its treasury strategy, citing Bitcoin’s performance compared to traditional assets. However, there’s no indication Meta is actively pursuing this.
In essence, Meta has moved away from its ambitious, centralized stablecoin project (Diem) that faced significant regulatory hurdles. Instead, they are now exploring a more pragmatic approach, focusing on leveraging existing stablecoins for specific payment functionalities (like creator payouts) and investigating other blockchain-related opportunities within their metaverse vision, such as social tokens and NFTs.

Video courtesy of CSOB

https://www.youtube.com/live/vkFW_m5m7m8?si=qYGMKeLbY2Dq5TAO

Video courtesy of CSOB