Walmart and Amazon Explore Launching Own Stablecoins for U.S. Payments

The potential issuance of stablecoins by Walmart and Amazon could disrupt traditional payment systems, prompting concerns among major payment processors like Visa and Mastercard.

Summary

Walmart and Amazon are reportedly considering the issuance of proprietary stablecoins to streamline payment processes and reduce costs, potentially saving billions in fees. This initiative has led to a decline in stock prices for Visa and Mastercard by approximately 5%.

Terms & Concepts
  • Stablecoin: A type of cryptocurrency designed to maintain a stable value relative to a fiat currency or a basket of goods.
  • Payment settlements: The process of transferring funds between parties to complete a transaction.
  • GENIUS Act: Proposed legislation aimed at establishing a regulatory framework for stablecoins, ensuring they are fully backed and compliant with consumer protections.