Meta Platform Inc. is all set yet again to make entry in crypto space and plan to launch a stablecoin later in 2025. This would be their second time trying their luck in crypto space. Notable their first time – project Diem, was a high end failure.This time however, they are cautious and have done their homework thoroughly. Their approach reflects maturity and seems more measured. Still, the key question remains the same: Will they be able to do it this time?
Lets have a look back and check the reasons behind the failure Meta faced with Diem. Down (Earlier Libra) was launched in 2019 with an aim to provide a universal currency. This dream was rather short-lived as the project encountered major political and regulatory pushback. The key concerns range from control over national currencies to user privacy and beyond. Its major financial partners like PayPal, Visa and Mastercard made an exit from the project and by early 2022 the project was sold off. Meta quietly exited the stablecoin race, until now.
So what is different this time? To start with Meta has decided to use existing stablecoins rather than launching its own. They plan to leverage pre established assets on blockchain networks like Ethereum. This move reduces the risk connected with a new currency launch. 
Meta, plans to use stablecoins mainly for things like paying creators and handling small cross-border transactions on its platforms. This strategy is more practical, less political, and better matched to what users want.
Next, Meta has changed its leadership to a more experienced one. They have brought in fintech veteran Ginger Baker to lead the initiative. Ginger Baker is previously known for Plaid and the Stellar Development Foundation. Her experience in both Web2 and Web3 finance signals a more measured and strategic approach.
Why this time it could be a hit? Meta has massive user reach. Its platforms serve more than 3.5 billion global users. Their approach gives them the benefit of mainstream adoption over any other player in the market. Stable coins add to the attractiveness of quick cross border payments at lower cost. This could be a major plus for content creators and small businesses.
But, does all this come without any challenge this time? The answer is not entirely. Regulatory challenges will always be there, especially in the US and EU. Trust issues can be another hurdle to be crossed. Meta has previously faced privacy scandals. With such a history it would be difficult for the users to trust it with their financial transactions. Finally market volatility can also play an unpredictable role in disrupting Meta’s plan.
The bottom line of the whole is that the company has learned from its past mistakes and have aligned their strategies in a much better way than previously. By using pre-existing platforms and by limiting scope to creators payment, Meta is playing safe and smart. This can give it a better position with much higher chances of success. However, project success ultimately depends upon building users’ trust and executing it at large. The challenges it faced in its earlier projects should be overcome to avoid repeating history.
