If Amazon and Walmart Sell Crypto, Should You Buy It?
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Nicholas Morine
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Zuri Anderson
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In June, mega-retailers Walmart and Amazon made headlines over speculation that they were considering the introduction of stablecoins, a form of cryptocurrency, as a new way for loyal customers to conduct business with them.
If two of the largest retailers, Amazon and Walmart, did end up issuing their own stablecoins, would it be wise to buy in?
Why Stablecoins Could Be a Wise Investment for Consumers
As Axios noted, if stablecoins were introduced into the retail space, they’d almost certainly have to come along with incentives to using them — both due to the tech barriers presented in usage, and in terms of more established and convenient methods, such as cash, credit or debit, being in widespread use.
If this does prove to be the case, saving a few dollars and cents by loading up your crypto account tied to Amazon or Walmart with what is essentially digital credit, or something equivalent to a gift card, could make sense for serious savers.
Those enticements could include partnerships between retailers and service providers, amplifying the rewards.
“So let’s say Amazon wanted to partner with an airline,” Karen McHenry, vice president of product for blockchain services company Metallicus, a blockchain services company, said.
“An airline could say that for anyone who holds Amazon stablecoins, we’re going to give them airline rewards. You can really create a very robust reward system,” McHenry continued, as cited by Modern Retail.
However, Amazon and Walmart Stablecoins Could Prove a Difficult Sell
An existing lack of regulatory scrutiny could make for slow moving when it comes to stablecoin adoption, without even considering the headaches consumers might face when trying to engage with these newer platforms.
Further, previous stablecoins have gone against their own monikers, losing the pegged ties to the underlying currency they are supposed to represent, as a 2023 Moody’s blog post outlined. While Amazon and Walmart are more likely than smaller entities to work to maintain the value of issued stablecoins, at the peril of infuriating their consumers, the risk does exist.
The danger further extends to issues with holding dead money in a stablecoin account tied to a retailer, which would presumably not be offered growth via interest.
“Many investors have chosen to divest their stablecoin holdings, partly in reaction to lack of transparency around the underlying reserves that support many stablecoins. In a rising interest rate environment, the appeal of higher yields offered by traditional assets is also likely contributing to a shift away from stablecoins,” Moody’s wrote.
The Fate of Amazon or Walmart Stablecoins Remains in Question
However, as Modern Retail detailed, the issuance of corporate stablecoins would largely depend on the passage of the GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act, as well as the will of retailers themselves. And while the act has passed the Senate, a House showdown is set to occur on partisan lines, according to Politico.
Further, while Amazon has remained mum on the matter, Walmart has openly denied pushing for its own stablecoin.
“While we continuously explore new payment technologies in efforts to support our customers, we are not piloting any programs and do not currently have any plans in place to issue our own stablecoin. Walmart has also not taken a public position on the GENIUS bill,” a spokesperson said.
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