Walmart, Amazon, Expedia mull creating their own stablecoins: report
Reports suggest that Walmart and Amazon are contemplating the issuance or adoption of stablecoins, a move that could revolutionize the processing of consumer payments worth billions of dollars and potentially bypass traditional banking systems.
The Wall Street Journal reported that both Amazon and Walmart have been engaged in internal discussions regarding the potential launch of their own digital currencies or partnerships with existing stablecoin providers.
Sources mentioned in the report stated that Amazon’s discussions are still in the early stages, with considerations around a proprietary coin for use within its online marketplace.
Expedia, a prominent online travel company, has also explored the possibility of issuing its own stablecoin, along with airlines and other major firms, as reported by the Journal.
Stablecoins are cryptocurrencies pegged to government-issued currencies such as the US dollar, offering a fixed value and backed by cash reserves or short-term US Treasuries.
These stablecoins enable instant, cost-effective transfers, making them attractive for merchants seeking quicker settlement and lower fees, especially in cross-border transactions.
Efforts to explore alternative payment systems have been ongoing in the retail sector, gaining momentum due to congressional interest in regulating digital assets.
The Genius Act, a bill facilitating a legal framework for stablecoin use in the US, recently advanced through Congress, potentially paving the way for increased adoption of stablecoins by merchants.
Even if Walmart and Amazon opt not to create their own tokens, they are contemplating joining a merchant-led consortium to adopt an existing stablecoin platform, offering an alternative to traditional card networks.
Major banks are also exploring a stablecoin consortium, aiming to enhance speed and flexibility in transactions, particularly for companies with global operations.
Trade groups advocating for the Genius Act cite potential cost savings and improved efficiency with stablecoin adoption, introducing competition in a market dominated by Visa and Mastercard.
While concerns about security risks and regulatory uncertainties persist, Walmart has pushed for amendments to the Genius Act to foster competition in the credit card market.
Walmart’s interest in financial services expansion is evident through its fintech unit’s growth, reflecting its ongoing efforts in the sector.
Comments from Amazon, Walmart, and Expedia are currently pending.
