The two leading retailers globally are exploring the introduction of stablecoins, a move that could significantly redirect transaction volumes away from traditional financial systems.
According to reports in The Wall Street Journal, both companies are considering this strategy in anticipation of potential changes brought about by the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which aims to provide regulatory clarity for stablecoin transactions.
The implementation of a brand-specific stablecoin could potentially save Amazon and Walmart billions in transaction fees, facilitating instant and transparent payments. The impact may be particularly noticeable in cross-border transactions, where high fees and delays are common.
However, concerns about the broader economic implications include the potential to divert substantial amounts from traditional banking systems. At present, neither company has confirmed any plans regarding their stablecoin ventures.
Not Alone in Their Ambitions
The retail giants are not alone in these endeavors, as the WSJ also noted that travel firms like Expedia Group and several major airlines have similarly considered launching their own stablecoins.
Meta is collaborating with stablecoin companies to launch its own cryptocurrency, focusing on cross-border payments. For instance, an Instagram creator could receive international payments in Meta’s stablecoin, bypassing delays, fees, and regulatory hurdles.
Getting into the Game
More traditional banks are also entering the stablecoin market. Societe Generale, a regulated French bank, launched its own stablecoin a few years ago with a euro-backed offering and now plans to introduce a USD-stablecoin variant.
Rumors suggest that major U.S. banks such as Citibank, JPMorgan Chase, Bank of America, and Wells Fargo are also considering issuing a joint stablecoin. These institutions are motivated by the significant $250 billion market already populated by PayPal’s stablecoin and one from Stripe.
Although many companies are not launching their own stablecoins, they are still working to accept coins issued by Tether and Circle. Recently, e-commerce platform Shopify announced it would accept Circle’s USDC through a partnership with Coinbase.
Shopify cited the secure and efficient protocol of stablecoins as the reason for adding this functionality, intended to benefit its global base of creators.