Amazon (AMZN) and Walmart Consider Stablecoins to Speed-Up Digital Payments

Major U.S. retailers Walmart (WMT) and Amazon (AMZN) are reportedly considering issuing their own cryptocurrency stablecoins.

The Wall Street Journal was the first to report that Walmart and Amazon are considering adopting digital stablecoins that would be pegged to the U.S. dollar. Stablecoins are cryptocurrencies whose value is tied to an underlying asset, typically the American dollar or price of gold.

Walmart and Amazon, which are the two largest retailers in the U.S., think that stablecoins could help to dramatically reduce merchant fees and speed-up payment settlements. According to The Journal, Walmart and Amazon are in the early stages of exploring their own stablecoins or entering into third-party stablecoin partnerships.

Stablecoin Legislation

However, adoption of stablecoins by Walmart, Amazon, and other retailers, is contingent on passage of the “Genius Act,” a proposed regulatory framework for stablecoins that is currently working its way through the U.S. Congress.

If the legislation is passed, it could pave the way for large companies to adopt or issue stablecoins as an alternative to existing payment systems. Stablecoins are growing in popularity as they are seen as less volatile than other cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).

Is AMZN Stock a Buy?

The stock of Amazon has a consensus Strong Buy rating among 47 Wall Street analysts. That rating is based on 46 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $241.64 implies 13.32% upside from current levels.

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