Meta is preparing to launch virtual tokens and cryptocurrencies for its apps, which can be used to tip creators, lend money and support other financial services. Meta Financial Technologies, Facebook’s finance division, has long been exploring the development of a virtual currency for the company.
Why it matters
As Meta’s current emphasis is on the metaverse, the project is still in its early stages. The Meta cryptocurrency, internally named Zuck Bucks, may not have been developed based on blockchain. Meta tends to introduce in-app tokens that are controlled by the company, similar to the tokens used in games.
Meta is also developing “social tokens” and “reputation tokens”, the in-app virtual tokens managed by Meta itself. Users can use these tokens to reward Instagram creators or those who have made major contributions to Facebook.
Context
Zuck Bucks are not Facebook’s first attempt into digital currency. In 2009, the social media platform introduced Facebook Credits to facilitate in-app purchases in games such as Farmville. While the service was originally popular, Facebook shut it down four years later owing to expenses associated with foreign currency conversions.
Meta’s continued interest in digital currencies is driven by the company’s need for new revenue streams. Meta shares are still down 30% since February 2, when the business disclosed their investment on the metaverse had resulted in a drop in fourth-quarter profit.
