Why can’t creators in Europe and Brazil celebrate just yet?
The news that Meta is using USDC on Solana and Polygon to pay creators is, on paper, a technological triumph. However, whilst the Philippines and Colombia are already reaping the benefits, the silence regarding Europe and Brazil is deafening.
Are we facing a new financial digital divide?
1. The regulatory maze: The MiCA factor and the ECB
Whilst Meta is making headway in markets with more flexible regulations, in Europe we face unprecedented centralised control.
- The question: The European Central Bank (ECB) is pushing for the ESMA to assume full supervision of crypto platforms under the MiCA legislation.
- The risk This centralisation aims to prevent ‘fragmentation’, but it also imposes such strict requirements that they could delay the arrival of direct stablecoin payments to European creators by years. Will Meta dare to deal with direct ESMA supervision just to pay a few euros to an ‘influencer’ in Madrid or Berlin?
2. Brazil and liquidity instability
Brazil is one of Meta’s largest markets, but the global crypto infrastructure is showing cracks that do not appear in press releases.
- Market reality: Recent analyses show that Bitcoin ‘whales’ are incurring losses running into millions and that there is a lack of ‘fuel’ (liquidity) in the traditional banking system, which is affecting risk assets.
- The uncertainty: If the DeFi system and the stablecoins on which Meta relies suffer episodes of stress, such as the recent ‘bank run’ that nearly brought down protocols like Aave, what guarantees do Brazilian creators have that their payments won’t be left in a technological limbo during a weekend of panic?
3. Real payments or an institutional illusion?
The official line is that blockchain is the future, but internal data suggests the market is ‘heavy’ and range-bound.
- The dilemma: We are seeing large companies like MicroStrategy accumulate more Bitcoin than BlackRock, but for the average creator, the reality is that there are “too many tokens and little real value”.
- The final question: Is Meta’s move a real payment solution or simply a strategy to shift liquidity towards the dollar (via USDC) whilst the traditional financial system “dries up”?
Disclaimer: The information set forth herein should not be taken as financial advice or investment recommendation. All investments and trading involve risk and it is the responsibility of each individual to do his or her due diligence before making a decision.
