Is Meta Plotting a Stablecoin Comeback Years After Libra's Flop?

Core Viewpoint - Meta Platforms is reportedly exploring the use of stablecoins in its business, revisiting a concept it previously attempted with Libra, which ultimately failed due to regulatory issues and reputational risks [1][2][12] Group 1: Historical Context - Meta's first attempt at stablecoins was Libra, launched in June 2019, which faced significant challenges leading to its failure [1][2] - The Libra Association, intended to govern Libra independently, lost key members like Mastercard and Visa by October 2019, and Meta later rebranded Libra as "Diem," which also failed due to opposition from the Federal Reserve [2][12] Group 2: Current Business Landscape - Since 2019, the cryptocurrency industry has evolved significantly, prompting Meta to reconsider its approach to stablecoins [3][11] - Meta's international advertising revenue has increased substantially, with an annual rate approximately $62 billion higher compared to Q1 2019, and nearly 56% of this revenue now comes from outside the U.S. and Canada [8][10] Group 3: Potential Benefits of Stablecoins - Stablecoins could reduce transaction friction and costs, allowing payments to be made as easily as sending a photo, which could enhance user engagement on Meta's platforms [6][10] - Utilizing stablecoins for payments to content creators could help Meta avoid high wire transfer fees, potentially increasing profit margins and encouraging more creators to engage with Meta's platforms [10][12] Group 4: Market Trends and Future Prospects - The total value of stablecoins has grown to $230 billion as of March 2025, a 30-fold increase over five years, with projections suggesting it could reach $1.6 trillion by 2030 [11] - Regulatory acceptance of stablecoins is improving, with global regulators developing frameworks that could legitimize stablecoins within the financial system [11][12]