Facebook’s financial arm, Meta Financial Technologies, is exploring the creation of a currency for the metaverse, which employees internally dubbed “Zuck Bucks.”
New plans to introduce digital currencies and also to provide loan products are in the works at Mark Zuckerberg’s Meta, after the collapse of the initial venture to launch a cryptocurrency.
The company is known to be looking for alternative revenue streams and new opportunities that can attract and retain users as the popularity of both Instagram and Facebook declines – a trend that threatens Meta’s business model, which relies on $118 billion per year in ad revenue according to its business model.
According to what is known, it will not be a cryptocurrency based on the blockchain. Instead, Meta is leaning towards introducing in-app tokens that will be centrally controlled by the company, similar to those used in game apps such as the Robux currency in the popular children’s game Roblox.
According to company memos, Meta is also considering the creation of so-called “social tokens” or “reputation tokens,” which could be issued as rewards for participation in Facebook groups, for example.
Another possibility is to have “creator coins” associated with specific influencers on the photo-sharing app Instagram.
Meta is also exploring the possibility of offering traditional financial services, with a focus on providing loans to small businesses at attractive interest rates, according to people familiar with the initiative.
Of course, the efforts are in the early stages and could be changed or scrapped, though its plans to integrate NFT into its apps are up for immediate implementation.
According to a memo shared last week, Meta is planning a pilot for NFT publishing and sharing on Facebook in mid-May. NFTs may generate revenue through “fees and/or advertising” in the future, according to another internal document.
Facebook declined to comment. Notably, Meta lost more than $220 billion of its market valuation in February on the day it revealed that users were spending more and more time on competitors such as the app TikTok.
So the company has sought to find other revenue streams and support e-commerce on its platform by delving into cryptocurrencies and blockchain technology.