As predicted, Meta is getting into the stablecoin game.
On the day when the United States Senate failed on a vote for the GENIUS Act (the stablecoin bill), word came out that Meta is looking at implementing stablecoins as a way to reduce costs.
If you recall, Meta (Facebook at the time) made big news with its entry into the world of crypto with a project called Libra. This received enormous backlash from many in power, causing the company to eventually pull away from that endeavor.
It was ultimately renamed Diem, before being sold off to Silvergate Bank.
Zuckerberg was obviously ahead of the curve on this one. The step back avoided a lot of regulatory (and legal) headaches. However, it is evident that Zuck has not forgotten about the industry nor the benefits that a stablecoin can provide.
If the reports are correct, Meta might be reentering the game, something that only makes sense.
Big News: Meta Getting Back Into Stablecoins
This is big news.
Meta, in terms of users, is the largest entity in the world. It is estimated that 3 billion people are on the applications on a monthly basis. This number if more than half the entire internet population.
At this moment it is unclear how Meta is going to enter. It was stated that this is a cost savings move.
Meta reportedly plans to use stablecoins to reduce the costs of payments compared to fiat currency, such as when paying Instagram creators. The firm doesn't appear to have a specific stablecoin in mind at the moment.
Here we see a lot of sensibility. Few will dispute the cost of sending cross border payments. When dealing globally, it is hard to argue with the efficiency (and economics) of crypto payments. Stablecoins are ideal for this purpose.
Up to this point, things are pretty straight forward. Beyond that, we enter speculation.
In looking at the above quote, one thing that stands out is the face no specific stablecoin was mentioned. This could be due to the fact the decision is not made, with exploration taking place.
Or, perhaps, the stablecoin that will be used is not created yet. Would anyone be surprised if the METAUSD is being worked on? After all, we could almost say that Meta invented the basic outline for assets backed stablecoins.
More Favorable Environment
In the past, Meta faced a lot of heat from politicians and regulators. We have to keep in mind this was long before Terra and Luna. When Meta laid out Libra, it was viewed as the threat.
Today, in spite of the challenge with the process regarding GENIUS, asset backed stablecoins are viewed as the preferred method which means Meta might be interested in reentering this realm.
Meta's rekindled interest in integrating stablecoins comes as U.S. regulators adopt a friendlier approach toward cryptocurrency following President Trump's inauguration. Big tech firms, banks, and stablecoin providers are all jockeying on how to shape United States stablecoin regulation.
The friendlier approach is not rhetoric. We are seeing concrete action in this direction.
We see the Office of the Comptroller of the Currency (OCC) has issued new guidance confirming that national banks and federal savings associations can engage in crypto-asset custody and trading services. This move allows banks to buy and sell digital assets on behalf of their customers along with engaging with third party entities for custody services.
In other words, the entire spectrum of digital assets is moving to the point where the commercial banks are able to be involved. Naturally, the OCC only applies to US banks yet it could spread rapidly.
This means anyone accepting stablecoins could have the money flowing directly into one's bank account. From Meta's perspective, it achieves the cost savings of blockchain transactions with the user experiencing no decline in service.
Another key component to this is the fact that banks can essentially swap tokens. My presumption is most major banks will have their own stablecoin. However, if something like METAUSD comes into existence, banks will accept that and swap it to what is preferred. The network effects are simply going to be too great.
Even if Meta opts not to bring out its own coin, the addition of stablecoin payments to its network will increase volume. With that many users, even the payouts from the company would increase the utility of USDT or USDC.
These are some baseline numbers that will likely go up.