Meta considers paying content creators in stablecoins
Meta is exploring the use of stablecoin payments on its platform Instagram as a way to improve financial options for content creators. Initial discussions with cryptocurrency infrastructure companies are focused on using stablecoins for smaller payouts to content creators. The move is part of Meta’s broader strategy to strengthen the financial ecosystem within its social media platforms and provide better income opportunities for content creators who rely on them.
Sources indicate that Meta is considering a multi-token approach and may not prefer a specific stablecoin. The main options being considered are USDT and USDC, chosen for their cost effectiveness and easy integration into global markets. Stablecoins could help Meta reduce transaction costs and simplify cross-border payments, especially in regions where traditional payout systems are slow or expensive.
These discussions are still preliminary and Meta is currently in a learning phase. To lead this effort, Meta recently hired Ginger Baker as vice president of product. Baker brings extensive fintech and blockchain experience from her previous role at Plaid and her current position on the board of the Stellar Development Foundation. She plays a key role in shaping Meta’s stablecoin initiatives internally and in connecting with potential crypto partners.
This renewed interest in stablecoins comes years after Meta abandoned its ambitious Libra project, which aimed to create a global digital currency backed by fiat currencies. After intense political and regulatory resistance, Meta eventually sold Libra’s assets. Since then, stablecoins have gained significant popularity among fintech companies and institutional players, reflecting a broader trend toward more stable and predictable forms of digital currency.
Meta’s potential adoption of stablecoin payments could have a significant impact on the creative economy. By offering a more reliable and efficient payment method, Meta aims to attract more content creators to its platform, which will ultimately increase user engagement and content quality. This initiative aligns with Meta’s ongoing efforts to diversify revenue streams and remain competitive in the evolving digital landscape.
Stablecoins offer several advantages over traditional payment methods for content creators. Their lower transaction costs and faster settlement times make for a smoother experience, especially for those receiving payments from an international audience. In addition, the blockchain technology underlying stablecoins enhances security and transparency through a decentralised and immutable ledger that tracks payments in real time, minimising fraud risks and assuring content creators of quick revenue.
However, implementing stablecoin payments faces regulatory hurdles and the need to comply with financial regulations in various jurisdictions. Meta must carefully navigate this complexity to ensure that the stablecoin payment system is both legal and secure.
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