Walmart And Amazon Consider Launching Crypto Stablecoins
Major U.S. retailers Walmart (WMT) and Amazon (AMZN) are reportedly considering issuing their own cryptocurrency stablecoins.
The Wall Street Journal was the first to report that Walmart and Amazon are considering adopting digital stablecoins that would be pegged to the U.S. dollar.
Stablecoins are cryptocurrencies whose value is pegged to an underlying asset, typically the American greenback or price of gold bullion.
Walmart and Amazon, which are the two largest retailers in the U.S., think that stablecoins could help to dramatically reduce merchant fees and speed up payment settlements.
However, adoption of stablecoins by Walmart, Amazon, and other retailers, is contingent on passage of the “Genius Act,” a proposed regulatory framework for stablecoins that is working its way through the U.S. Congress.
If the legislation is passed, it could pave the way for large companies to adopt or issue stablecoins as an alternative to existing payment systems.
According to The Journal, Walmart and Amazon are in the early stages of exploring their own stablecoins or entering into third-party stablecoin partnerships.
Stablecoins are growing in popularity as they are seen as less volatile than other cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
The stock of Walmart has risen 5% this year to trade at $94.83 U.S. a share. Amazon’s stock has declined 3% on the year to currently trade at $213.24 U.S. per share.
