According to a report by the Wall Street Journal, Amazon and Walmart are considering launching their own US dollar-backed stablecoin, which could significantly impact the traditional financial system.
Plans of Amazon and Walmart for Stablecoin Issuance
The report states that Walmart and Amazon are in the early stages of developing a stablecoin for online purchases, as well as considering the use of external stablecoins via a merchant consortium. Discussions on this matter are active and could change transaction volumes in the financial system.
Challenges and Impacts of the GENIUS Act
Decisions regarding the stablecoin issuance by Walmart and Amazon largely hinge on the progress of the GENIUS Act, a piece of legislation aimed at developing a regulatory framework for stablecoins. Support for the GENIUS Act from merchant organizations highlights the desire to create competition with Mastercard and Visa, while also reducing costs for consumers.
Comparison with Other Market Players
Major U.S. banks, such as Citigroup, JPMorgan Chase, and Bank of America, are also interested in a joint stablecoin program. The GENIUS Act is projected to expand the U.S. stablecoin market to $2 trillion by 2028, which will also contribute to growing interest in stablecoins.
The plans of Amazon and Walmart to introduce a stablecoin underline the increasing attention towards digital currencies and their potential to change the financial ecosystem. The successful implementation of the GENIUS Act will be a key factor in the future development of stablecoins in the U.S.
