#BigTechStablecoin "Big Tech Stablecoin" refers to the idea (or attempt) of large technology companies – such as Meta (formerly Facebook), Google, Apple, or Amazon – to create or support a stable digital currency (stablecoin), which could be used for global payments within their ecosystems.

🪙 What is a stablecoin?

A stablecoin is a cryptocurrency with a stable value, typically pegged (usually 1:1) to a fiat currency such as the US dollar. Examples:

• USDT (Tether)

• USDC (Circle)

• DAI (MakerDAO – decentralized)

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🔍 History: The case of Meta (Facebook) – Libra → Diem

🔹 2019 – Facebook announces Libra

• Digital currency backed by a basket of currencies and government securities

• Objective: global, fast, and cheap payments in the WhatsApp, Messenger, Instagram ecosystem

• Supported by major partners: Visa, Mastercard, Uber, Spotify

🔹 2020–2022 – Becomes Diem, but is stalled

• Regulatory authorities (USA, EU) criticized:

• the potential to destabilize monetary policies

• the lack of state control

• the risk of Big Tech monopoly + money

• Meta was forced to sell the project → in 2022, Diem was abandoned

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🔐 Why do Big Tech companies want stablecoins?

Advantages for them:

• Direct control of payments within their own ecosystem

• Reduced transaction fees → higher profit

• Access to unbanked markets

• User lock-in on the platform

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⚠️ Why are authorities hesitant?

1. Private financial monopoly: non-financial companies could become currency issuers

2. Monetary sovereignty: affects central bank policies

3. Systemic risks: in case of failure, millions of users affected

4. Privacy & personal data: combining financial data with social data.