Amazon and Walmart Reportedly Set to Launch Stablecoin, Poised to Shake Up the Digital Payments Industry

Two global retail giants, Amazon and Walmart, are reportedly seriously exploring the possibility of launching a stablecoin—a digital currency whose value is directly pegged to the US dollar. This initiative has the potential to revolutionize payment systems, reduce transaction costs, and accelerate payment settlements within their respective ecosystems.

According to a report from Cointelegraph, Amazon and Walmart are currently considering two options: either developing their own proprietary stablecoin or forming a partnership with a third-party stablecoin provider through a merchant consortium.

This move is gaining further momentum thanks to regulatory clarity provided by the Genius Act—a proposed bill designed to establish a legal framework for the use of stablecoins in the United States. As reported by MarketWatch, the presence of this regulation has made the prospect of stablecoin adoption by Amazon and Walmart increasingly realistic.

Meanwhile, the financial markets have begun to respond. Shares of Visa and Mastercard reportedly dropped by approximately 5% following the news, signaling investor concerns over the potential erosion of traditional credit card-based payment systems' dominance.

The Reasons Behind Amazon and Walmart’s Interest in Stablecoins

Cost Efficiency
Stablecoins enable a reduction in interchange fees, which typically range from 2% to 3%. Given the massive transaction volume handled by both companies, this efficiency could save Amazon and Walmart billions of dollars annually.

Faster Transaction Settlement
As cited by PYMNTS, stablecoins can facilitate instant transaction settlements—a highly valuable feature for international payments and global supply chain systems.

An Alternative to Credit Cards
If stablecoin adoption becomes widespread, a stablecoin consortium could emerge as a serious competitor to Visa and Mastercard, affecting both consumer usage and business operations.

Challenges and Obstacles

Despite its vast potential, the realization of a stablecoin initiative still faces several key challenges:

• The Genius Act must still gain approval from both the US House of Representatives and the Senate.

• Security concerns, consumer protection, and tight regulatory scrutiny remain major issues, as highlighted by PaymentsJournal.

The Banking Sector's Response

Major banks are likely to be prompted to form rival stablecoin consortia or partner with large retailers in order to maintain their relevance in the digital financial ecosystem.

Regulatory Policy

Amazon and Walmart’s move has also drawn attention from policymakers. Several legislators have even proposed restrictions on digital coin issuance by non-financial entities, citing concerns over consumer protection and national security.