X Weighs Paying Influencers and Creators in Stablecoins

Social media giant X is reportedly considering the use of stablecoins as a means of compensating influencers, according to a report by CoinDesk. The news outlet obtained this information from an unnamed source who is also involved with other social media companies testing the implementation of stablecoins for influencer payments. PYMNTS reached out to X for comment but has yet to receive a response.

CoinDesk highlights that stablecoins have become a popular choice for blockchain payments due to their ability to facilitate faster and more cost-effective cross-border transactions, catering to businesses of varying scales. The report also mentions that this isn't the first time an Elon Musk-owned company has experimented with stablecoin payments.

SpaceX, another Musk-owned venture, utilizes these digital assets to collect cross-border payments from Starlink customers. Starlink is SpaceX's satellite internet service provider catering to emerging markets.

Elon Musk recently appointed Benji Taylor, formerly a Coinbase executive, as the head of design at X. Taylor's background includes overseeing Coinbase's blockchain network and has experience in decentralized finance. Moreover, X has been modifying its approach to compensating creators. Earlier this month, the company announced that it would discontinue its revenue sharing system and introduce the "Original Content Rewards Program" instead.

This new system aims to reward creators who contribute original ideas, expertise, reporting, creativity, and commentary on the X platform.

Recent research from PYMNTS Intelligence reveals that while there is growing interest among consumers in using stablecoins and other cryptocurrencies for transactions, their adoption remains constrained by factors such as acceptance, trust, and inconsistent payment experiences. The study, titled "From Asset to Everyday Money: Making Digital Currencies Spendable," suggests potential solutions for bridging this gap.

According to the researchers, "linked cards, instant conversion, and modern issuer-processing systems can connect digital assets to the payment tools consumers and merchants already utilize." Furthermore, the research indicates that 77% of consumers would create a crypto or stablecoin wallet through an existing banking or FinTech application.

Despite this interest, stablecoin usage lags behind demand in several areas. For instance, 42% of stablecoin holders aspire to make significant purchases using digital assets, but only 28% currently do so. The report also emphasizes that cross-border business payments represent a near-term use case for stablecoins, as they can help reduce costs, expedite settlements, and provide access to dollar-linked value.