This move could enable them to sidestep traditional card networks and lower transaction fees.
Stablecoins, digital assets designed to maintain a fixed value often pegged to the USD, aim for price stability and practicality in everyday transactions. Unlike more volatile cryptocurrencies, stablecoins offer this consistency.
By issuing their own stablecoin or accepting third-party versions, large retailers can operate outside the existing financial infrastructure controlled by banks and credit card companies. This could potentially cut billions of dollars in interchange and processing fees currently paid to providers like Visa and Mastercard, as mentioned in a recent Wall Street Journal report.
Regulatory developments could play a crucial role.
The proposed Genius Act is pending Senate review, seeking to establish regulations for private companies issuing stablecoins. Although it has cleared some procedural obstacles, final approval from both the House and Senate is still needed before it becomes law.
Retailers are not the only ones interested in this innovation; Expedia and certain airlines are also considering the use of stablecoins in their payment systems.
Walmart officials declined to comment on these plans, while Amazon did not respond to inquiries.
There was little immediate impact on Walmart’s stock, but Visa and Mastercard shares dropped by 5% and 4%, respectively, according to Investopedia.
