Walmart and Amazon are considering developing their own stablecoins pegged to the US dollar, which could lead to significant reductions in transaction costs and faster settlements.
Potential Stablecoin Development
According to a report from *Wall Street Journal*, Walmart and Amazon are looking into the possibility of developing stablecoins pegged to the US dollar or other government-backed currencies. There has been no official confirmation from either company at this time.
Benefits of Using Stablecoins
The potential launch of stablecoins could significantly lower costs for merchants, who currently pay between 1% and 3% for each credit card transaction. For large companies processing billions of transactions, these costs can reach billions of dollars annually. Notably, stablecoin transactions can settle almost instantly, while traditional card payments typically take 1 to 3 business days.
Dependence on the GENIUS Act
Plans for the launch of stablecoins depend on the progress of legislation known as the GENIUS Act. If signed into law, it would establish a regulatory framework for the legal issuance of stablecoins in the US.
The development of stablecoins by Walmart and Amazon could significantly alter the financial landscape by reducing costs and expediting settlement processes, but it will depend on legislation.
