What happened?
Retail giants Amazon and Walmart are considering launching their own USD-backed stablecoins. This news comes amidst the US Congress’s preparation for a final vote on the GENIUS Act, which aims to regulate stablecoins in the nation. The use of stablecoins could enable faster and cheaper transactions, potentially saving these corporations billions in banking fees.
Who does this affect?
This development mainly affects large corporations like Amazon and Walmart as they explore ways to cut transaction costs. It also impacts tech companies such as Apple, Google, Airbnb, and social media platform X, which are exploring stablecoin applications for payments. Furthermore, smaller businesses and platforms like Shopify are looking at stablecoin integration to streamline financial processes and reduce costs.
Why does this matter?
The exploration and potential implementation of stablecoins by major corporations could significantly impact the market by reducing reliance on traditional banking systems, leading to lower transaction costs. If successful, it may drive more companies to adopt similar technologies, further integrating blockchain solutions into mainstream finance. Additionally, the regulation of stablecoins through the GENIUS Act could bring more stability and trust to the crypto market, encouraging wider adoption.