Meta pivots to social credit system via “Zuck Bucks”

What

Meta is exploring an in-app currency for making purchases on Facebook and Instagram

Why

Meta has made two previous attempts to create its own currencies in the form of Diem and Libra, and has followed up with this latest attempt. This time it has avoided using a cryptocurrency model to create “Zuck Bucks” after facing hurdles by US regulators for both Diem and Libra

What next

The news comes after Meta saw its share price drop following its first reported decline in users. This new currency could provide the company with a new revenue stream and help it keep pace with rival platforms such as Tik Tok

The story

Dubbed “Zuck Bucks” as a working title by the Meta team, the new currency will not be a cryptocurrency, unlike previous efforts by Meta. Instead, the new token will be used for in-app purchases, similar to those used in video games.

Meta is also reportedly working on a lending platform designed to facilitate small business loans “at attractive rates” according to a report by the Financial Times. 

There are also plans by the social media platform to integrate NFTs with its products, as seen by their rival, Twitter. This will be accompanied by the introduction of “social” or “reputation” tokens on Facebook that can be awarded to users for creating useful and meaningful posts.

In addition, “creator coins” are said to be in the works for Instagram influencers. This combined with NFTs could make social status a more prominent aspect of how Facebook and Instagram work, creating more of an incentive for users to build followers and drive engagement.

Meta has not abandoned cryptocurrencies altogether, however, and plans to repurpose its Novi wallet — originally designed for Diem — to integrate with its Facebook Pay product that uses fiat currency. It also has plans to get involved in Web3 by exploring data storage via blockchain and granting users more control over their digital identity through inoperable digital profiles that can be used across different platforms.

To learn more about NFTs, visit our learning resource here.

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