Yet regulatory scrutiny looms large. U.S. lawmakers have repeatedly questioned the risks of private entities issuing currencies, particularly after the 2022 collapses of TerraUSD, FTX, and Silvergate. Meta’s plan hinges on strict compliance with anti-money laundering (AML) rules and full-reserve transparency for any integrated stablecoins—a nod to regulators demanding “equal oversight” for crypto and traditional banking.

Competitively, Meta faces rivals like PayPal (with its USD-pegged stablecoin PYUSD) and Square (now Block), which has partnered with Alphabet to explore crypto solutions. Meanwhile, Tether’s USDT remains dominant in emerging markets, though its opaque reserves continue to draw criticism. Circle, by contrast, has positioned USDC as a “regulatory compliant” alternative, a trait that may align with Meta’s risk-averse approach.

The Metaverse Angle

Meta’s renewed interest in crypto coincides with its long-term bets on the metaverse, where stablecoins could facilitate frictionless transactions for virtual goods and services. “In a digital-first economy, stablecoins are the connective tissue,” argues a Meta spokesperson. “They’re essential to realizing our vision of a seamless, global financial layer for the metaverse.”

Challenges Ahead

Experts caution that user privacy concerns, crypto volatility, and blockchain scalability issues remain barriers. Integrating stablecoins into Meta’s ad-driven model could also raise ethical questions about data exploitation. However, the upside for Meta—and the crypto industry—is undeniable. “If Meta succeeds, it could legitimize stablecoins as everyday tools, not just speculative assets,” says blockchain researcher David Park. “But they’ll need to walk a tightrope between innovation and regulation.”