#BigTechStablecoin

Stablecoin currencies for major tech companies

A new force enters the realm of stablecoins (tied to the value of an asset, such as the US dollar) providing cheaper and more efficient alternatives to traditional payments.

1. Libra/Diem (Meta).

The Libra (Diem) project in 2019 aimed to create a global stablecoin backed by a basket of currencies and assets. The project faced challenges such as:

Monetary sovereignty:

The role of central banks and sovereign currencies.

Anti-money laundering: Applying laws to users within the network.

Monopoly: Enhancing market power in the sector.

These pressures led to the scaling back of the project and a change in strategy to be sold in 2022.

2. Novi (Meta): A digital wallet developed with Diem for the use of stablecoin.

3. Projects:

Amazon collaborated with stablecoin providers to push a new means of payment in certain markets.

Google is investing in blockchain infrastructure and cloud services.

Fintech companies (PayPal): Launched its stablecoin (PYUSD) in 2023 due to major companies' desire to gain a share in this market.

Opportunities: Access to essential financial services via their phones.

Cross-border payments: International transfers are instant and cheap.

High efficiency: Reducing costs and time for financial transactions.

User experience: Integrating financial payment services and e-commerce among people.