What is a stablecoin first?
A digital currency whose price is almost fixed because it is linked to a traditional currency like the dollar or an asset like gold.
Well-known examples
USDT (Tether) USDC (Circle) BUSD (Binance - previously)
What does Big Tech Stablecoin specifically mean?
It is a project launched by a giant technology company to create a stablecoin used for
Online payments/financial transfers
The economy within the company's platforms like Facebook, Instagram, WhatsApp
The most famous attempt: Facebook's Libra then Diem
Developer: Facebook (Meta)
The first name: Libra then changed to Diem
Its goal: A stablecoin used within Facebook applications like WhatsApp and Messenger
The outcome: The project faced severe regulatory pressure and was canceled in 2022
Why do technology companies want a stablecoin?
1. To facilitate payment processes through their applications 2. To reduce reliance on banks 3. To provide financial solutions to billions of users, especially in developing countries 4. To gain control over part of the global financial system.
Challenges they face
Objections from governments and central banks
Issues related to privacy and anti-money laundering
Fears of corporate control over the financial system
Are there currently active stablecoins from Big Tech companies?
There is currently no active and widespread project from a Big Tech company in the stablecoin space after the failure of Diem, but
PayPal launched a stablecoin called PYUSD, which is not exactly Big Tech but is a significant step
Companies like Amazon and Apple are still watching.
