Amazon and Walmart are exploring the possibility of launching their own USD-pegged stablecoins to reduce payment processing expenses, which could significantly change the payment market.
Amazon and Walmart's Initiative
Both companies aim to cut down on payment processing costs. This initiative could change how payments are handled in the retail sector. Currently, there have been no official statements from the executives of the companies, but the digital teams of Amazon and Walmart are actively working on this initiative.
Potential Impact on Financial Institutions
The exploration of stablecoins by these major retailers may lead to substantial reductions in payment costs, impacting traditional financial institutions that provide these services. If successful, the ongoing bill regarding digital financial technologies could create a regulatory framework for corporate-backed digital currencies.
Historical Context and Lessons Learned
Historically, initiatives such as Facebook's Libra and PayPal's stablecoin provide valuable regulatory lessons and potential pitfalls in this sector. This indicates that the interest of Amazon and Walmart in stablecoins may signal a significant shift towards digital currencies, seeking to streamline financial transactions.
The involvement of companies like Amazon and Walmart in exploring stablecoins could majorly change the payment market and pose new challenges for traditional financial institutions.
