- Walmart and Amazon explore stablecoins to reduce fees and delays.
- Genius Act could unlock digital coin plans for major retailers.
- High transaction volumes drive interest in digital dollar-based solutions.
Walmart and Amazon are now exploring the use of stablecoins to improve their payment systems. According to The Wall Street Journal, both companies are exploring the idea of developing their own digital tokens that will be pegged to the U.S. dollar. These stablecoins may assist in lowering the payment charges and accelerating settlement. The companies are however awaiting further clarification by U.S. regulators before they take the plunge.
Genius Act Could Pave Way for Amazon and Walmart Digital Coins
The main thrust of this quest is the Genius Act, a proposed legislation that would establish defined guidelines governing stablecoins. Walmart and Amazon are keeping a close eye on it. If it becomes law, both companies may take the next step toward launching their digital currencies. Meanwhile, they are looking at other alternatives too. As an illustration, they can become a part of a group of merchants developing stablecoins. The third alternative is to adopt third-party solutions, which are ready in the market.
Both companies have not officially announced these plans but sources familiar with the matter say that discussions are at an advanced stage. If the move succeeds, it would transform the payment processing in Walmart and Amazon. Both companies currently use the outdated banking systems, which are subject to charges and time consumption. Converting to a stablecoin system might assist them in reducing expenses and having greater control over transactions.
Amazon is massive in the world of e-commerce. In 2024, the total revenue of the company was approximated to be about $638 billion. Online sales contributed about $447 billion of that figure. Another big player in this space is Walmart. In 2023, it recorded above 100 billion dollars in e-commerce sales. That accounted for nearly 18% of the company’s total revenue.
With such high volumes, even small savings on each transaction can lead to large overall gains. For this reason, both businesses are seeking quicker and cheaper payment methods. Stablecoins are a promising solution. They are programmed to retain a constant value since they are pegged on the U.S. dollar. Due to this, they are not subjected to the same volatility as cryptocurrencies such as Bitcoin or Ethereum.
Stablecoins to Simplify Global Payments for Big Tech
It is not only Walmart and Amazon that are becoming interested in stablecoins. Apple, Google, and Uber are seen to be considering the use of digital dollars to make payments worldwide. These companies have not announced anything officially, but their activities indicate their increased interest in this technology. Stablecoins can reduce these problems by offering a single, stable unit of value. This is especially useful for companies with global operations.
The second benefit of stablecoins is that they can make international payments easy. In many instances, international transactions are characterized by the conversion of currencies and expensive charges. Stablecoins mitigate these issues by providing a single unit of value that is stable. It is particularly effective with the firms operating on a global scale.
In conclusion, the fact that Walmart and Amazon are interested in stablecoins indicates that the world of digital payments will change significantly. These firms are planning when stablecoins could be a widespread payment system. However, a lot will be determined by the evolution of U.S. regulations. In the meantime, both companies are discussing possibilities and preparing to take the next step.
