Walmart and Amazon are exploring the launch of their own stablecoins, which could significantly alter the approach of multinational companies to payments and settlements.
Why Walmart and Amazon Are Getting Into Crypto
Amazon (valued at $2.26 trillion) and Walmart ($757.31 billion) are assessing the issuance of dollar-backed cryptocurrencies to reduce credit card network fees, streamline global payments, and improve cross-border settlement speed. Walmart has already tested blockchain in Canada for freight payments, leading to fewer disputes and greater efficiency.
What Stablecoins Offer to Retail Giants
Launching their own stablecoins can help Amazon and Walmart avoid high transaction fees from traditional card networks, gain real-time visibility in supply chains, accelerate international e-commerce settlements, and improve customer payment experience with faster and cheaper options.
Challenges Ahead for Crypto Integration
Despite the benefits, integrating stablecoins isn't without hurdles. Key issues remain the price volatility of crypto, the complexity of blockchain scalability for large supply chains, and cybersecurity risks that must be addressed to protect digital transactions. Walmart previously faced difficulty scaling blockchain across its vast operations, which may return as a key concern.
As stablecoins rise and blockchain matures, Walmart and Amazon's entry into crypto could reshape global commerce. If successful, their stablecoins might pave the way for a new era of low-cost, high-speed payments.
