It often feels like cryptocurrency is everywhere — and if a newly leaked report is accurate, a crypto boom could be coming to Facebook’s parent company, Meta.
What’s happening?
On May 8,
Fortune
reported that after a sprawling earlier attempt to introduce cryptocurrency payments across Facebook, WhatsApp, and Meta’s other platforms was shelved, the company “is testing the crypto waters again.”
The report wasn’t based on rumors or speculation. According to the outlet, no fewer than “five sources familiar with the matter” spoke on condition of anonymity about Meta’s purportedly renewed interest in introducing crypto features.
A
Forbes
blogger said Meta was “still licking its wounds from its failed attempt to upend the global financial system,” a crypto initiative “torpedoed by regulators in 2019.” However, when President Donald Trump took office in January, his administration immediately reversed the government’s historically cautious approach to often
volatile cryptocurrencies
.
According to Fortune, Meta hired a “vice president of product with crypto experience” back in January as part of their effort to introduce stablecoins across their platforms. Stablecoins differ from other types of cryptocurrencies because their value is pegged to an established asset like fiat currency, which helps reduce the price fluctuations typical of traditional cryptos.
Meta chose not to comment on the leak, however, the CEO did.
Mark Zuckerberg
went to a fintech conference just two days prior to the release of Fortune’s report and vaguely commented on getting aboard popular trends toward the later stages of “the game.”
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Why does Meta’s involvement with cryptocurrency raise concerns?
It goes without saying that Meta, formerly known as Facebook, and
their CEO
have become the focus of greater attention
public scrutiny
This year—partly due to Zuckerberg changing his stance on
fact-checking
and the proliferation of
harmful information
on the platform.
Individually, cryptocurrency sparks significant controversy for numerous reasons, with its environmental footprint being one of the most concerning aspects. Although the sector is gradually shifting towards renewable energy sources, studies suggest that up to
85% of crypto
is fueled by contaminated energy sources.
Bitcoin is undoubtedly the most well-known cryptocurrency, boasting the largest market capitalization.
market cap
of over $2 trillion.
Bitcoin mining
, the process of generating and issuing the currency not only demands a substantial quantity of water but also exerts immense pressure on the system.
power grid
. In 2021,
The New York Times
it was reported that Bitcoin consumes more electricity than the entire country of Finland does.
Widespread cryptocurrency mining has caused significant disruption in various communities, leading to excessive
coal ash
and significant
noise pollution
.
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What actions are being taken regarding cryptocurrency’s effect on the environment?
It makes sense that Meta’s rumored crypto initiatives could boost the acceptance of cryptocurrencies.
exacerbating its effects
on the environment.
Meta’s initial efforts to adopt cryptocurrency faced setbacks because of lawmakers’ keen interest in regulating the company, and the situation remained stagnant.
regulation of cryptocurrencies
might lessen their harmful effects on nature.
FinTech companies have acknowledged this problem, and a new type of currency known as
Algorand
attempts to balance its energy usage.
Cryptocurrency cards
Are another possibly more environmentally friendly choice, working similar to a credit or debit card but offering “greater energy efficiency compared to most of today’s payment systems, including credit and debit cards,” according to the source.
International Monetary Fund
.
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first appeared on
The Cool Down
.