From Diem to USDC: Meta Rekindles Stablecoin Ambitions

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Meta hasn’t given up on stablecoins. The company is reportedly exploring USDC as a payout method for content creators. But can it avoid the fate of its failed Diem project?

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Anonymous sources have told crypto media that Meta (formerly Facebook) is once again eyeing stablecoin integration, this time as a tool for paying content creators. The move marks a potential return to a sector the company was previously pushed out of by regulators. 

However, Meta isn’t aiming to launch a global digital currency like its previous Libra/Diem project. Instead, it focuses on a more utilitarian goal: simplifying and speeding up payments for the content creators. 

Will this use case be enough to earn a green light from regulators?

Zuckerberg Bets on a Regulated Asset

According to Fortune, Meta is in talks with several crypto infrastructure firms, including Circle, the issuer of USDC. The company is reportedly exploring stablecoin payments primarily as a tool to enhance the user experience for content creators, particularly in regions with limited access to traditional banking.

Fortune sources report that Meta is actively working on stablecoin integration - The Coinomist
Fortune sources report that Meta is actively working on stablecoin integration. Source: Fortune

For these users, USDC could offer an alternative financial channel. 

The stablecoin’s key advantages include: 

  • Price stability 
  • Fast transaction processing 
  • No traditional banking fees 
  • Real-time settlement

This model also benefits Meta, reducing reliance on national currencies while opening the door to scalable Web3 solutions.

The Shadow of Diem: Will Meta Tread More Carefully This Time?

Back in 2019, Mark Zuckerberg’s company launched what turned out to be a failed venture—Libra (not to be confused with the controversial memecoin LIBRA), which was later rebranded as Diem. 

The initiative aimed to create a global digital currency governed by a consortium of major tech and financial players. Meta (then still Facebook) envisioned Libra as a universal payment tool backed by a basket of fiat currencies and government securities. 

The plan included issuing a native token also called Libra.

From day one, the project faced fierce opposition from governments and central banks. However, concerns extended beyond the potential replacement of a sovereign currency by a private one, touching on issues such as:

Over two years, the initiative remained under intense regulatory pressure. That scrutiny ultimately led major partners, including Visa, Mastercard, PayPal, and Stripe, to exit the consortium. 

Despite a rebrand and a stripped-down architecture, Libra/Diem never made it to market. By 2022, the project was officially shut down, with its infrastructure sold to crypto-friendly bank Silvergate.

Meta seems to have taken the lesson seriously. This time, the company is moving with far more caution: 

  • No plans to issue its own token
  • No reserve-backed model
  • No ambitions to act as an issuer

Instead, Meta is exploring an existing stablecoin (USDC) and relying on fully regulated partners. The messaging has also shifted. The focus is no longer on controlling the money flow but on offering infrastructure services.

This strategic pivot lowers both political risk and regulatory pressure, helping Meta avoid the missteps that doomed Libra/Diem.

However, the news raises several unresolved questions:

  1. Which jurisdiction would govern a platform facilitating such creator payouts? 
  2. How will tax-related disputes be handled across different regions? 
  3. Who will be responsible for verifying recipients and ensuring AML/KYC compliance?

Meta won’t be able to sidestep these issues, even if it outsources the technical backend to a third-party partner like Circle.

More on the infrastructure behind cross-border crypto payments: Circle Unveils CPN to Streamline Global Payments With USDC and EURC

Meta’s Pragmatic Strategy: One Step at a Time

Unlike Diem, which aimed for global rollout and a universal payment layer, Meta’s new initiative feels more grounded. This time, the company is looking to embed crypto into an existing ecosystem that already includes:

  • A defined use case (creator payouts) 
  • Infrastructure (social platforms) 
  • Potential partners (Circle)

The strategy gives Meta room to start small, with a controlled pilot in select countries, on a specific platform, or for a limited group of creators. 

Furthermore, it comes with strategic advantages: 

  • Lower regulatory risk 
  • More time to build user trust gradually 
  • The option to wind down the project if needed, without major reputational fallout

So far, Meta has avoided bold claims or high-profile launches. Circle, too, has stayed silent. 

And that caution seems wise. Meta has learned from its past: launching a crypto product takes more than technical muscle. It calls for market maturity.

If the company does introduce stablecoins in a limited, incremental rollout and frames it not around the abstract idea of financial freedom, but around a real-world use case like fast, stable, and accessible payouts for global creators, it might stand a better chance at mainstream acceptance.

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