Understanding stablecoin and why Walmart and Amazon want their customers to use it
Amazon and Walmart have issued their own cryptocurrency.
Amazon and Walmart, two of the world’s biggest retailers, may soon launch their own U.S. dollar–pegged stablecoins in a shocking move to cut out credit card giants like Visa and Mastercard.
According to a new report from the The Wall Street Journal, the idea is to give these companies greater control over digital transactions while reducing the billions they pay annually in card processing fees.
The concept is simple but potentially game-changing: instead of paying with a Visa or Mastercard, customers could use a retailer-backed digital coin to make purchases directly. PYMNTS report that “sources familiar with the matter indicate that other large multinationals, including Expedia Group and major airlines, are also considering similar initiatives."
What is a stablecoin?
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being locked to a reserve asset, usually a traditional currency like the U.S. dollar. Unlike Bitcoin or Ethereum, which can experience wild price swings, stablecoins aim to keep their value steady—typically 1 stablecoin equals 1 USD.
For Amazon and Walmart, this move is not simply about saving money. Creating and using their own stablecoins would allow the companies to build out new loyalty programs and integrate financial services more deeply into their platforms, potentially reshaping how everyday people use money.
Of course, this all comes with a big question: what happens to privacy when your spending data lives on a retailer’s blockchain? At present, we don’t have an answer.
The aforementioned report doesn’t predict an immediate rollout but highlights this as a near-future possibility as blockchain infrastructure becomes more mainstream. With PayPal already offering its own stablecoin, and with mounting pressure on financial networks to innovate, the stage is clearly being set.
If Amazon and Walmart do go ahead with their own coins, it won’t just be about tech—it’ll be a power play in the future of money.
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