‘Zuck Bucks’ could be Meta’s second attempt at a centralized digital currency

Small business loans, in-app virtual currency and social tokens are being considered by the social media giant as it seeks to secure alternative revenue streams.

New reports suggest that Meta Platforms (NASDAQ:) has finalized its plans to introduce virtual coins, tokens and in-app loans. It comes as Facebook’s parent company apparently intends to pursue its financial ambition after the collapse of Diem, its controversial digital currency project.

Previously, Meta had hatched plans to allow users to produce and sell NFTs in an effort to cash in on the digital collectibles frenzy. The company intends to launch a test download and distribution of NFTs on Facebook in mid-May. This is according to an internal memo released last week. Another feature trial that will enable membership in Facebook groups based on NFT ownership and another for typing will follow.

Meta’s Facebook faces dip in users and revenue

The new leadership change came after Meta’s initial dream of developing a virtual asset came to an end. Diem. The project was launched in 2019 and faced strong regulatory opposition from policymakers, leading to its eventual collapse. In January, the project’s operator, the Diem Association, announced the sale of the cryptocurrency firm’s assets to Silvergate Capital (NYSE:) for $182 million.

Diem was meant to be a stablecoin, a less volatile type of digital currency, with its value tied to stable assets. However, that hasn’t stopped the company from being a cause for concern. David Marcus, co-creator of Diem, remarked on Twitter (NYSE:) that the idea might work better with a more “acceptable” developer.

Tweeter

After the Diem adventure ended, Meta then faced the problem of dwindling users and dwindling ad revenue. The company lost 20% of its market valuation following its Q4 and 2021. It also saw an estimated decline in revenue of around $10 billion.

Meta alluded to several factors for its poor performance. First, he mentioned a drop in daily active users due to the emergence of Tiktok. Second, privacy changes to Apple’s IOS have significantly affected its ad-based revenue business model. Finally, like most other companies, including Tesla (NASDAQ:), it has been hit hard by global macro issues, including supply chain difficulties.

Meta turns to finance and Web3 to revive its fortunes

Meta in need of fresh ideas and a change of tact, the company opted for finance and Web3. The choice to create virtual tokens and integrated loans is to seek alternative sources of income and to create new functionalities. This is intended to attract and retain users on its various platforms.

Inside sources say virtual tokens dubbed “Zuck Bucks” would not be blockchain-based like Diem. Instead, it would be issued and controlled by the company, like in-game tokens for Roblox and World of Warcraft.

Meta’s new foray into Web3 is a far cry from its previous method with Diem. It intends to focus on digital payments through its apps by merging its Facebook payment with Novi, originally intended for Diem. This, he believes, will offer its users payment, identity and digital asset management within the platform’s application network.

While focusing on digital payments, it also intends to use blockchain technology to bring more decentralization to its platforms. He is currently studying whether or not to store data on a blockchain. Also, how it can give users more control over their digital identities. And finally, the possibilities of sharing user accounts on platforms other than Meta’s applications.

Therefore, his new moves would see Meta stepping down as the central content moderator. This would give Facebook communities more control over content moderation and ensure that the full ideals of Web3 are embraced.

Sylvia B. Polson