Meta (formerly Facebook), parent company of Facebook and Instagram, has reportedly reignited its exploration of stablecoin technology, aiming to integrate blockchain into its payment systems and carve a new path in cross-border payments.
Meta's Renewed Stablecoin Strategy
According to insider sources cited by Fortune magazine, Meta is in preliminary talks with several cryptocurrency firms to evaluate the feasibility of using stablecoins for cross-border transactions. The focus is on practical applications such as Instagram creator payouts, where stablecoins could significantly reduce the high costs associated with traditional fiat transfers.
Learning from Past Failures: The Libra/Diem Project
This new initiative comes just five years after Meta's first major blockchain venture—the ambitious "Libra" project (later renamed Diem). Launched in 2019, Libra aimed to create a global payment network backed by multiple fiat currencies but faced strong opposition from U.S. regulators, ultimately shutting down in 2022.
New Leadership, New Approach
Ginger Baker, Meta's new VP of Product, is now leading this revitalized strategy. With prior experience at fintech firm Plaid and the Stellar Development Foundation, Baker brings critical blockchain payment expertise to the table.
Unlike the broad-reaching Libra project, Meta's current approach is more narrowly focused on solving real-world pain points, particularly the high costs of international small-value payments.
Potential Applications and Partnerships
Key discussions revolve around leveraging stablecoins' "borderless" nature for scenarios like:
- Paying creators across different markets via Instagram
- Reducing remittance fees for small transactions (e.g., $100 creator payments)
While Meta hasn't yet selected stablecoin partners, it has reportedly engaged with:
- Circle (issuer of USDC)
- Cryptocurrency infrastructure firms about technical integration
👉 Discover how stablecoins are transforming global payments
Timing Amid Evolving U.S. Stablecoin Regulations
Meta's move coincides with accelerating U.S. regulatory efforts around stablecoins. Major financial players like Fidelity Investments and Visa have recently announced stablecoin or tokenization tests, while Bank of America hinted at possibly issuing its own stablecoin.
CEO Mark Zuckerberg's Candid Reflection
At a Stripe conference this week, Zuckerberg acknowledged that the Libra project was "completely over," admitting the company moved too soon. However, he emphasized Meta remains committed to staying technologically agile—this time with a more pragmatic, scenario-driven approach.
Industry Perspectives and Challenges
Observers note Meta's strategy shift—from building grand payment networks to optimizing existing products via blockchain. Yet uncertainties remain due to:
- Unfinished regulatory frameworks
- Geopolitical risks
- Meta's past reputation challenges
FAQ Section
Q: Why is Meta exploring stablecoins again?
A: To solve high-cost pain points in cross-border small payments, particularly for creator economies.
Q: How is this different from the failed Libra project?
A: Focused on practical applications rather than creating a global currency; smaller in scope and more technically feasible.
Q: What stablecoins might Meta use?
A: USDC is a likely candidate, though no final decisions have been made.
Q: When could this launch?
A: No timeline yet—still in early exploratory phases.
Q: Will regulators approve this attempt?
A: More likely than Libra, given narrower scope and evolving stablecoin regulations.
👉 Explore the future of blockchain payments
As Meta recalibrates its approach, the global race among tech giants and financial institutions to harness stablecoin technology enters its next critical phase.