Walmart and Amazon are considering the launch of their own stablecoins, indicating a significant shift in multinational companies' approach to payments.
Why Walmart and Amazon Are Getting Into Crypto
Amazon and Walmart are evaluating the issuance of dollar-backed stablecoins with the goals of: * Reducing credit card network fees * Streamlining global payments * Improving cross-border settlement speed Walmart has 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 * Improve customer payment experience with faster and cheaper options.
Challenges Ahead for Crypto Integration
Despite the benefits, integrating stablecoins faces hurdles: * Price volatility of crypto still looms, affecting product pricing * Blockchain scalability remains complex for large-scale supply chains * Cybersecurity risks 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.
