Is Stablecoin the Secret Weapon of Amazon & Walmart?

Imagine checking out at Wallmart or Amazon using their own digital dollars instead of your credit card. Both retail giants are now quietly working on their own Stablecoin - d igital currencies tied to the U.S. Dollar as part of a bigger plan to change how payments work. If approved, this shift could help them avoid hefty bank fees, speed up checkout times and give customers a whole new way to pay.

Two of the biggest retailers globally, Walmart and Amazon, are considering launching their own USD-pegged stablecoins to enhance the way customers pay and reduce transaction costs.

Both firms have already talked about how they might issue their own cryptocurrency tokens, stablecoins —digital tokens pegged to the US dollar—to enable cheaper, quicker payments.

Walmart and Amazon currently pay billions in fees to credit card networks and banks. With blockchain technology, they hope to cut costs and speed up refunds and settlements.

Why Stablecoins?

• Lower costs: No credit card middleman needed

• Quicker payments : Almost immediate transfers

• Greater control: Can process refunds, loyalty points, and even customer rewards

• Safe and transparent: Blockchain logs every transaction

They're also deciding whether to make use of already existing stablecoin such as USDC or PayPal USD. But having their very own branded stablecoin would mean they have complete control over the system.

The firms aren't proceeding with plans just yet. They await the fate of the GENIUS Act, a U.S. bill in the works that would establish definitive guidelines for stablecoins.

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoin) is backed by U.S. legislators and seeks to legislate the issuance of digital dollars by firms.

If passed into law, Walmart and Amazon can issue their own tokens legally without doubt.

Source: WSJ Report

Law Detail: GENIUS Act Proposal

Joining Forces with Other Retailers?

Also being discussed is creating a merchant stablecoin group, where large retailers such as Target or Costco could join Walmart and Amazon to create a joint token or work on a joint blockchain platform.

All large retailers would then use the same kind of digital cash, making it simpler for customers and lessening the sector's dependence on old-fashioned banking.

Main Points at a Glance:

• Walmart and Amazon are looking to launch in-house stablecoins

• Aims to cut transaction fees paid to cards and banks

• Blockchain payments can provide instant settlements

• Waiting for regulatory go-ahead under the GENIUS Act

• Potential collaborations with other retailers on a common token

• Might still opt to use USDC or PayPal USD rather than creating their own.