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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.
Fortune reported that Meta recruited a “vice president of product with crypto experience” in January as part of its attempt to “introduce stablecoins” on its platforms. Unlike other forms of cryptocurrency, the value of stablecoins is tacked to an existing asset such as fiat currency, limiting the volatility associated with crypto.
Meta declined to comment on the leak, but CEO Mark Zuckerberg attended a fintech conference two days before Fortune’s report appeared and made cryptic remarks about embracing popular trends late in “the game.”
Why is Meta’s interest in crypto concerning?
It’s no secret that Meta, Facebook, and their CEO have been the subject of increased public scrutiny this year — in part because Zuckerberg reversed course on fact-checking and the proliferation of harmful information on the platform.
Separately, cryptocurrency is controversial for a wealth of reasons, not the least of which is its environmental impact. Though the industry is slowly moving toward clean energy, research has indicated that as much as 85% of crypto is powered by dirty fuel.
Bitcoin is by far the most prominent cryptocurrency, with a total market cap of over $2 trillion. Bitcoin mining, the way the currency is generated and issued, not only requires a significant amount of water but also places massive strain on the power grid. In 2021, The New York Times reported that bitcoin used more energy than all of Finland.
Broader crypto mining has wrought havoc on communities, generating excess coal ash and significant noise pollution.
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What’s being done about crypto’s environmental impact?
It stands to reason that Meta’s reported crypto plans could amplify the adoption of cryptocurrency, exacerbating its effects on the environment.
Meta’s early attempts to embrace crypto stalled due to lawmakers’ interest in regulating the firm, and the regulation of cryptocurrencies could reduce their adverse impacts on the environment.
Fintech firms have taken notice of the issue, and a newer currency called Algorand endeavors to offset its energy consumption.
Cryptocurrency cards are another potentially greener option, functioning like a credit or debit card while being “more energy efficient than much of the current payment landscape, including credit and debit cards,” per the International Monetary Fund.
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