Two of the biggest names in retail—Amazon and Walmart—are reportedly looking into creating their own cryptocurrencies. If they go through with it, it could be a major shift away from traditional banking and card networks.
According to a report by the Wall Street Journal, both Amazon and Walmart are exploring stablecoins, a type of digital currency tied to the U.S. dollar. The goal is to reduce credit card and bank transaction fees—and potentially save billions in the process.
Why stablecoins make sense for the retail giants
Aside from saving money, stablecoins could also help speed things up. When customers use banks or cards, it can take days for the money to actually land in the retailer’s account. Stablecoins could make that nearly instant. That’s especially helpful for companies working with international suppliers.
Stablecoins are designed to stay stable—hence the name. They’re usually backed one-to-one with government currencies like the dollar, and supported by cash or Treasury reserves. Right now, they’re mostly used for crypto-trading or holding cash digitally.
What are Amazon and Walmart planning?
It’s still early, but the report says Amazon has discussed launching its own coin specifically for use on its platform.
Walmart hasn’t confirmed details, but both are reportedly keeping a close eye on how things unfold in Washington, D.C.
That’s because there’s a new bill in play: the Genius Act. It aims to create rules around how stablecoins can be issued and used. The bill recently cleared another hurdle in Congress, but it still needs to pass both the Senate and the House before it becomes law.
What does this mean for banks?
If Amazon and Walmart go ahead with their stablecoin plans, it could spell trouble for banks and credit card companies. These middlemen currently rake in a cut of nearly every purchase, but that would change if stablecoins take over.
What does the internet think?
The Wall Street Journal‘s report was shared in the r/cryptocurrencies subreddit, where it sparked discussion among users. m
One commenter suggested these stablecoins would essentially replace gift cards.
“Effectively gift cards without all of the added fees that sometimes get applied, plus cutting out whatever merchant fees they get hit with,” they wrote. “Adoption at this scale is precisely what the entire industry has always hoped for. And it adds more credibility to the technology.”
“Either crypto remains an obscure and silo’ed industry with a small user base, carrying a stigma that it’s only used for illicit or shady transactions – and the value remains low forever.. or you have actual adoption at scale, leading to people warming up to the tech, adding countless layers of value along the way,” they continued. “You can’t have it both ways.”
Amazon and Walmart are Preparing to Launch Stablecoins
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Another user claimed they were blocked from shopping at Amazon after trying to purchase using cryptocurrency. “They (amazon) banned me for paying with crypto, no way they will ever see another penny from me,” they said.
According to Investopedia, Amazon does not directly accept crypto payments, though shoppers can inadvertently purchase through the site with crypto via gift cards. In 2022, Amazon’s chief executive officer, Andy Jassy, said the company would not offer crypto payments anytime soon.
Now, however, if the laws change, that could be a possibility.
