Key Takeaways:
- The proposed token to be entirely controlled by Meta
- Token to help Meta regain its place as the top social media network provider
LAGOS (CoinChapter.com) — After the unfortunate end of its initial digital currency initiative Libra Diem, Meta (formerly Facebook) is reportedly planning to roll out a virtual currency.
According to a Financial Times report, the tech behemoth intends to introduce virtual currencies and lending services on its platforms. The new initiative is aimed at boosting alternative sources of revenue for users on its apps — Facebook, WhatsApp, and Instagram.
The report also finds that Meta is considering creating social tokens, or community-based reputation coins that are used to reward contributions to specific groups.
Sources close to Meta revealed that employees at the company have dubbed the tokens “Zuck Bucks,” named after CEO Mark Zuckerberg. The source also indicated that the token will serve as the currency for the firm upcoming metaverse.
Furthermore, the company is also planning to issue creator coins or tokens associated with individual influencers on Instagram. This move is expected to facilitate Meta’s integration of non-fungible tokens (NFTs) into its platform.
Zuckerberg had previously announced that Meta would be venturing into the world of NFTs. Although no specifics were given, Zuckerberg said the feature would allow users to bring already-existing NFTs onto Instagram.
However, the sources note that nothing is official, and the idea may be pushed back or scrapped at any instance.
How Meta Aims To Avoid Regulatory Hurdles
Taking into account the rigorous legal battle it faced when it attempted to launch its initial first digital currency, Meta has adopted a new way to roll out “Zuck Bucks”.
According to the sources the tokens would be centrally controlled by Meta rather than tied to a blockchain. This will invariably enable it to avoid various regulatory hurdles previously experienced.
Recall, in January this year, Meta discontinued its three-year-old blockchain-based project dubbed Diem after it ran into opposition from policymakers.
Interestingly, the social media network had earlier explored digital finance as it launched Facebook Credits in 2019. This initiative allowed in-app purchases in then highly popular games such as Zynga’s FarmVille, among others. While it was successful, Facebook Credits was shut down four years later after it became too costly for foreign currency conversions.
Is Zuck Buck Meta’s Lifeline?
Additionally, reports have indicated that the new initiative will help Meta regain its place as the dominant social media network provider.
Recently, Meta stock plunged over 20% after it announced its first-ever quarterly decline in the number of active users. The decline resulted in a loss of almost $200 billion from the company’s total valuation.
Like TikTok, among other social media networks that use a tipping system, if launched Meta users will be able to purchase the token (Zuck Bucks) and give it to their favorite creators.
Creators can also buy coins to use tools that promote and boost their TikTok video’s profile, increasing viewers or followers.
