Facebook looks to ‘Zuck Bucks’ after cryptocurrency failure
Facebook is planning to introduce virtual tokens and loans as it seeks new revenue streams amid fierce competition from other social media platforms.
Meta, which had hopes to launch a cryptocurrency dashed by regulatory setbacks, has suffered an exodus of users from its platforms Facebook and Instagram, whose business model is based on adverts.
Meta Financial Technologies, the tech giant’s financial unit, is now mulling a virtual currency for the metaverse that staff have nicknamed “Zuck Buck”’, the FT reported.
It is understood this would not be a cryptocurrency, but rather a system of in-app tokens controlled by Meta.
The company is also considering rewards for users who contribute meaningfully on the platforms, for instance on Facebook groups, in the form of “social tokens” or “reputation tokens”.
Similarly, influencers on Instagram could be given “creator coins”.
The social networking conglomerate is also reportedly exploring traditional financial services, such as loans for small businesses.
A spokesman for Meta said: “We have no updates to share today. We continuously consider new product innovations for people, businesses, and creators. As a company, we are focused on building for the metaverse and that includes what payments and financial services might look like.”
Plans to introduce non-fungible tokens are more advanced. Founder and chief Mark Zuckerberg said last month there were plans to integrate NFTs into Instagram in the “near term”.
He said at US tech conference SXSW that creators would eventually be able to “mint”, a term used to describe creating NFTs, within the apps.
Meta has seen an exodus of staff amid frustration over the failure of its cryptocurrency project Diem.
Originally known as Libra, it was unveiled to great fanfare in 2019 but failed to receive regulatory approval.
It was wound down earlier this year, with an agreement to sell assets to US bank Silvergate for $200m (£148m).
Meta suffered the biggest one-day drop in value of any company in Wall Street history after posting a dismal set of financial results in February.
Growing competition from TikTok had sent Facebook’s user numbers down for the first time, while profits dropped as a result of the company’s heavy spending on “metaverse” technologies such as virtual reality.
