JPMorgan analyst Tien-tsin Huang views Friday’s selloff in shares of MasterCard (MA) and Visa (V) after the Wall Street Journal reported that Walmart (WMT) and Amazon (AMZN) are exploring issuing their own stablecoins as overblown. The article primarily discusses how the merchants are examining options that threaten banks, primarily through a treasury function, with only a relatively minor mention around the threat to MasterCard and Visa, the analyst tells investors in a research note. JPMorgan thinks stablecoins have a place in the global flow of money, but does not see stablecoins as threatening to consumer payment modalities, particularly in domestic use cases. As such, it does not see stablecoins as threatening to MasterCard and Visa. Merchants have long sought to reduce their cost of acceptance, but consumers are not incentivized to change their payment preferences, contends JPMorgan.
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