Retail giants Walmart and Amazon reportedly contemplating the release of their own cryptocurrencies, referred to as stablecoins.
Major Retailers and Banks Consider Launching Stablecoins, Potentially Transforming Commerce and Payments
In a significant development for the global financial landscape, major retailers and banks are exploring the possibility of issuing their own stablecoins. This shift, driven by regulatory clarity and financial incentives, could mark a transformative moment for commerce and payments.
The passage of the U.S. Genius Act has created a clearer regulatory framework supporting business-issued stablecoins, enabling more companies, especially large retailers, to issue proprietary stablecoins. Walmart and Amazon are among the first major retail companies seriously considering this move. Banks and travel companies, such as Citi, Chase, Bank of America, Wells Fargo, Expedia Group, and many major airlines, are also evaluating stablecoins, though major launches or announcements remain limited or unreported as of now.
Societe Generale has already launched its own euro-backed stablecoin, and plans to launch a USD-backed stablecoin as well. Meta is also working with stablecoin companies to launch its own stablecoin, with cross-border payments as a primary use case. The stablecoin market is already expanding, with PayPal and Stripe having launched their own stablecoins, and more are expected to join the fray.
The potential impacts on the traditional financial system could be profound. Stablecoins offer cost-effective, fast, and borderless transactions, which could materially shift the payments ecosystem. If consumers start holding funds in stablecoins rather than fiat deposits, it could reduce demand for bank deposits, impacting banks' deposit funding and revenue models. Widespread stablecoin use for payments and treasury functions could challenge incumbent payment infrastructure globally.
However, a proliferation of merchant-specific stablecoins could introduce complexity and friction for consumers unless interoperability solutions or clearinghouses emerge, analogous to current fiat transaction systems. On the positive side, stablecoins may increase financial inclusion by enabling banking services to underserved populations due to their 24/7 availability and lower transaction costs.
The broad adoption of stablecoin payments could divert billions from the traditional banking system. Companies like Shopify are working to accept stablecoins issued by Tether and Circle. Shopify has partnered with Coinbase to accept Circle's USDC. An Instagram creator could potentially receive an international payment in Meta's stablecoin and bypass delays, fees, and regulatory barriers.
In summary, major retailers are poised to launch stablecoins soon, driven by regulatory clarity and financial incentives. Broad adoption could disrupt traditional banking revenue streams and necessitate new interoperability frameworks to manage a more fragmented stablecoin ecosystem. The potential passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act could provide a regulatory framework for stablecoin transactions, further facilitating this shift.
- As more major retailers and banks consider issuing stablecoins, technology will play a critical role in enabling cost-effective, swift, and borderless transactions, potentially revolutionizing the commerce and payments landscape.
- The potential integration of stablecoins in the payments ecosystem could lead to a significant shift in consumer behavior, with funds being held in stablecoins rather than traditional fiat deposits, consequently impacting banks' deposit funding and revenue models through reduced demand for deposits.
