Meta may launch new stablecoin
Meta denies stablecoin plans amid speculation of new digital currency pivot.
Meta is reportedly re-evaluating its stance on stablecoins after the collapse of its initial crypto venture, Diem, in 2022.
While Meta’s communications director Andy Stone denies any ongoing stablecoin projects, industry insiders suggest the company may be exploring stablecoins to streamline creator payments and cross-border transactions, reports Cryptopolitan.
The speculation comes as the stablecoin market gains renewed momentum, drawing fresh scrutiny from U.S. lawmakers.
Senator Warren Urges Tougher GENIUS Act to Block Big Tech
Senator Elizabeth Warren is pushing for amendments to the GENIUS Act, which aims to regulate stablecoins in the U.S., to explicitly bar Big Tech from issuing digital currencies. Warren expressed concerns that companies like Meta could leverage stablecoins to exert undue influence over financial systems, potentially compromising competition and consumer privacy.
“If Big Tech has control over digital currencies, it could reshape democracy itself,” Warren warned.
Meta Faces Scrutiny Over Potential Stablecoin Plans
Despite Meta’s public denial of any new stablecoin initiatives, Warren has called on CEO Mark Zuckerberg to clarify the company’s intentions. She argues that Meta owes it to Congress to disclose whether it is pursuing stablecoins through indirect or third-party methods.
As the GENIUS Act heads toward a crucial Senate vote, Meta’s next move could significantly impact regulatory outcomes and its future in digital finance.
Recently we wrote that USD1 is at the center of political and financial debate as the U.S. Senate prepares to vote on the GENIUS Act, a pivotal bill aimed at regulating stablecoins.
