Retail giants Amazon and Walmart are considering the possibility of launching stablecoins, which could significantly alter consumers' approach to online payments.
Reducing Payment Costs
According to the Wall Street Journal, both companies are contemplating creating brand-specific stablecoins or joining external stablecoins through a potential merchant-led consortium.
Using stablecoins could help the giants bypass traditional financial systems where merchants currently pay 1% to 3% per card transaction. These fees can amount to billions of dollars annually for companies processing high transaction volumes. Stablecoins offer a chance to lessen these costs with nearly instant settlement times compared to the one to three business days required for card payments.
Planning and Implementation
Currently, Amazon is in the early planning stages. Sources familiar with the matter report that the company is discussing the potential for an in-house token that could be used for purchases on its platform. Walmart is evaluating similar options and is actively lobbying for reforms in the payment space that would support digital payment innovation.
Regulatory Obstacles
However, the future use of stablecoins by major retailers may depend on upcoming legislation. The proposed GENIUS Act, aimed at establishing a clear regulatory framework for such digital assets in the United States, recently cleared another procedural step but still requires approval from both the Senate and the House. The final Senate vote on the bill has been scheduled for June 17. Meanwhile, trade groups have been actively engaging with lawmakers to support its passage.
In conclusion, Amazon's and Walmart's plans to launch stablecoins present new opportunities for streamlining online payments and reducing costs, although much will depend on future legislative initiatives.
