Meta has planned the creation of its own virtual currency, which for the time being has gained popularity by the name of Zuck Bucks (given by the employees), apparently taking its identity from the CEO’s name.
Earlier this year, Meta had to give up on its Diem cryptocurrency, but the company is still exploring finance products, and Zuck bucks will be one such initiative by Meta financial technologies, the Meta’s financial arm. This virtual currency will be designed for Facebook and Instagram users in an attempt to seek additional revenue streams and different features that can attract and retain users and reduce the platforms’ reliance on advertising in the future Metaverse – the 3D virtual environment focused on social connections.
Will Zuck Bucks be a cryptocurrency?
Zuck bucks is unlikely to be a blockchain-based cryptocurrency, highlighting that it will be different from the Company’s last attempt. Then what is the purpose? With the digital currency, Meta is looking forward to introducing in-app tokens like those used in gaming apps, which would be controlled by the company itself. Zuck Bucks is likely to resemble microtransactions found in mobile games. It will be bought with real money to get a certain amount of credits to be spent on in-app perks and accessories, such as attires to change the look of a video game character.
Apart from this, Meta is also looking to discover more avenues. The “social tokens” or “reputation tokens are also part of the plan, and these are intended to be issued as rewards for healthy contributions to Facebook groups. Then, there are “creator coins” for the favorite creators on Instagram. The company is also exploring traditional financial services that include small business loans at good rates.
Looking back at Facebook’s Payment business
Do you remember Facebook credits, the Facebook’s payment business? So even before Libra – a stablecoin which operated on its own blockchain – Facebook Credits was the currency of Facebook. The developers who hosted their apps on Facebook could charge their users in Facebook Credits. They received 70 cents on the dollar, and Facebook acquired the rest.
Facebook Credits powered the growth of Zynga, a startup games studio that introduced Farmville. The users could install and play Farmville on Facebook, but to get any further in the game, they had to make payments using Facebook Credits. While this initiative was successful, it was shut down later as Facebook’s international growth called for expensive foreign currency conversions.
Zuck bucks is, therefore, an initiative of Meta Financial Technologies which follows the company’s unfortunate venture of creating a global cryptocurrency- Libra (later Diem). Diem was abandoned at the beginning of 2022 after issues with US regulators.
Shedding more light on Zuck bucks’ purpose
Meta lost more than $220bn from its market valuation in February 2022 as users were diverting to rivals, such as TikTok. So in order to spread and reengage its user base, Meta is planning to dive into more avenues to develop a range of virtual products. While Meta still remains the leading social media provider, TikTok has also built a business that depends on in-app purchases and e-commerce.
Meta, which has a track of aping products like Instagram Stories, is now on its mission to find ways to further monetize its user base. According to the Financial Times, the virtual currency idea will support the company in developing its Metaverse. Since Meta’s last attempt at creating the cryptocurrency failed, the efforts are geared towards being an integral part of Metaverse’s payment and financial services.
What is The Future of Zuck Bucks?
Let’s first clarify that Zuck Bucks is just a dubbed name given by the staff and we actually don’t even know if the token would be called by that name. But well, more than the name, it is important to understand the purpose and the attempt by the CEO of Meta to create a version 2.0 of Diem. But then the question arises that since Diem failed, how Zuck Bucks will succeed, and what is so different about it that the company is planning to delve into it with so much confidence?
Well, Zuck bucks seems to climb down from the concept of Diem. It also appears to be a streamlined version of all the other financial apps related to Meta. The priority here points toward Investments that will facilitate payments within WhatsApp and Messenger and help creators monetize their activity.
Well, the reality is that Zuck bucks is still not a thing, and no one knows if it will ever be implemented, but the company is making efforts to maintain its stronghold, and after the failed attempt to launch Diem, the only option for Metaverse is a centrally controlled currency. So, where growth and expansion are the goals, Zuck Bucks (or whatever the company chooses to call it) might become the next big thing in the upcoming digital landscape.