The encryption concept unit observed daily: Meta returns to stable currency payments, Libra/Diem leaves four years after failure

1. From Libra to USDC: One goal, two distinct paths

The Libra project in Meta was high-profile in 2019 and plans to issue a global stable currency, supported by a basket of French currency reserves, covering its 3 billion+user base. However, major global regulators, such as the Fed, the Treasury and the European Central Bank, almost joined forces to oppose it on the grounds that monetary sovereignty and financial stability could be threatened. Libra changed its name to Diem and was completely closed in 2022 and Meta sold all the related assets. Meta's approach to entry is different: instead of issuing its own stability currency, it is directly using the compliance stabilization currency issued by the Circle Internet Group, Inc. (NYSE: $CRCL), USDC, which pays off the creator's remuneration on the Solana or Polygon chain; the payment infrastructure is provided by Stripe, and tax declaration documents are issued by Meta and Stripe to the creators. The central logic of this design is that Meta, with its already compliant third-party stabilization of currency and payment infrastructure, has completely circumvented the regulatory risk of "self-built currency" while achieving the commercial objective of accelerating the efficiency of cross-border payments。

 

2. Why Colombia and the Philippines: The real pain in the cost of cross-border remittances

The project is currently open only to some eligible creators in Colombia and the Philippines, and users can bind encrypted wallets to Meta accounts and choose to receive USDC, Stripe, on Solana or Polygon, to provide tax reports related to digital asset transactions. It's no accident to choose these two markets - The Philippines is one of the world ' s largest exporters of overseas labour remittances, and Colombia is equally dependent on large-scale cross-border remittances. The traditional SWIFT remittance-to-remittance cycle is usually 1-5 working days with high processing rates; by stabilizing the currency chain, funds can be received within minutes, at close to zero. This experience gap provides the most direct value proposition for the stabilization of currency payments, and is also the bottom driver of the continued expansion of the stable currency clearing network in Visa, which yesterday confirmed that the annualization of the stable currency settlement has reached $7 billion, with an increase of 50 per cent, covering more than 50 countries and over 130 card projects, with Latin America and the Asia-Pacific region being the fastest growing region。

 

3. Industrial implications for Stripe and Circle

Meta ' s stabilization currency payment project directly benefits two companies in the industrial chain. Stripe (unlisted) as a payment infrastructure provider not only handles payment enforcement but also undertakes to generate tax compliance reports - – This role is highly compatible with its strategic positioning of "AWS for money," with the head of Link operations under the flag of Stripe Jay Shah confirming that its Link payment tool is integrated into Meta’s stable currency payment system. For the Circle Internet Group, Inc. (NYSE: $CRCL), the introduction of Meta represents a major upgrade of the USDC application scenario - – From the narrative of the encryption industry's internal tools to the payment currency of the world's largest social media platform, USDC's market value is over $78 billion, about 25 per cent of the global stable currency market. Meta’s endorsement is also symbolic at the regulatory level: if Meta, a technocrat with more than 3 billion users, chooses USDC as a payment tool, it will further strengthen the regulatory characterization of the stability currency as a “payment instrument, not a securities instrument” and directly underpins the argument for the validity of the retention of the motivational clause in the CIAT Act。

 

"Infrastructureization" point to stabilize currency payments

Meta's payments cut into the same expansion as Visa's stable currency clearing network, pointing together to a clear industry signal that stabilization currency payments are moving from "encrypted experiments" to "financial infrastructure". Over the past two years, the main use scene of the stabilization currency has remained the price and settlement tool of the encrypted exchange; and the embedding of the stabilization currency in the global card network clearing area and Meta's payment of content creators' pay in the stable currency mark the penetration of the use into real economic activity. This trend has far-reaching implications for the valuation of the encryption concept unit: It means that the growth of stable currency demand will increasingly be driven by the payment scene rather than by the volatility of encrypted market sentiment. According to Bernstein's March study, "Stable currency adoption has started independent of the encryption market cycle, USDC supplies are near historical heights, even though the encryption market remains expanding in a phase-down environment." - This judgement is being confirmed by the latest actions of Meta and Visa. For Circle, which will publish its financial statements in May this year, Meta’s stabilization currency is both a positive validation at the product level and the latest industry endorsement that it has gained in the CLARITY Act legislative competition。

Data source:https://bbx.com/THE ENCRYPTION CONCEPTS INFORMATION BASE IS BASED ON YESTERDAY'S GLOBAL LISTED CORPORATE BULLETIN AND THE SEC/TSE DISCLOSURE DOCUMENT。