Walmart, Amazon Explore Creating Cryptocoins Amid Rising Demand
Walmart and Amazon are exploring the creation of their own stablecoins, according to individuals familiar with the companies’ plans. This move comes as digital currencies gain popularity and usage expands globally. By launching their own coins, both retailers aim to reduce the billions they currently pay in transaction fees. As a result, funds could be transferred instantly and more cost-effectively.
Stablecoins are digital currencies typically backed by U.S. Treasuries and pegged one-to-one with the dollar. They are primarily used to store cash or purchase other cryptocurrencies. Because they maintain a fixed value, stablecoins are seen as more reliable than traditional cryptocurrencies like Bitcoin.
However, this initiative cannot move forward without regulatory approval. The Genius Act, a bill proposing a regulatory framework for stablecoins, must pass both the House and Senate. Therefore, legislation remains a major hurdle before implementation can begin.
Regulation and Industry Reactions Raise Questions
One trade group, the Merchants Payments Coalition, is actively lobbying Congress to pass the Genius Act. According to the group, allowing stablecoins would give merchants access to lower-cost alternatives to current payment methods. Meanwhile, Walmart is reportedly seeking to add an amendment to the bill that would increase competition in the credit card sector.
The implications of this shift are already visible. On Friday, stocks for Visa and Mastercard dropped about six percent. Notably, Visa emerged as the worst-performing company on both the Dow Jones Industrial Average and the S&P 500 by midday. Although it’s unclear how banks would respond, the threat of new competition is real.
Airlines and travel companies such as Expedia are also working on similar payment solutions. In the broader financial ecosystem, this signals a growing interest in digital currency from various sectors.
Early Discussions, Broader Trends, and Potential Impact
Although Amazon’s plans remain in early stages, a source noted that the company may also consider using an external stablecoin. This would provide flexibility while still tapping into the benefits of digital payment systems. Meanwhile, Walmart is further along in its efforts, focusing on how such technology could streamline costs and improve customer transactions.
Cryptocurrency ownership in the U.S. is still relatively limited, with about six percent of the population holding any form of digital coin. Yet the momentum is building. As TD Cowen analyst Jaret Seiberg noted in a report this week, “The push to instant payments is inevitable and represents a risk” to existing financial giants like Visa and Mastercard.
While it remains uncertain how this trend will reshape the payment landscape, the intent from two of America’s largest retailers is clear. If legislation passes, stablecoins could soon play a major role in everyday purchases.
