Walmart and Amazon Are Exploring Issuing Their Own Stablecoins (msn.com)
- Reference: 0178041111
- News link: https://news.slashdot.org/story/25/06/13/1846255/walmart-and-amazon-are-exploring-issuing-their-own-stablecoins
- Source link: https://www.msn.com/en-us/money/companies/walmart-and-amazon-are-exploring-issuing-their-own-stablecoins/ar-AA1GDQts
The companies' final decisions hinge on passage of the Genius Act, legislation currently moving through Congress that would establish a regulatory framework for stablecoins. These digital currencies maintain a one-to-one exchange ratio with dollars and are backed by cash or Treasury reserves, offering merchants the potential for faster payment settlement and significantly reduced processing fees compared to traditional card transactions that can take days to clear.
[1] https://www.msn.com/en-us/money/companies/walmart-and-amazon-are-exploring-issuing-their-own-stablecoins/ar-AA1GDQts
If you think 2008 was bad (Score:1, Insightful)
Wait until you see the crash when all this crypto bullshit takes down our economic system. It'll make the Great depression look like the .com bubble...
There's a reason why fiat currency exists and it's not to ruin your fun. It's a little thing called stability.
Re: (Score:2)
> There's a reason why fiat currency exists and it's not to ruin your fun. It's a little thing called stability.
Stablecoins have their value pegged to fiat currency. That's why they're called stable. Its not about speculation, it's about an alternative to exchange mechanisms like VISA, Matercard, PayPal, etc.
Re: (Score:2)
good foundations, but what happens at scale? how trustworthy are the custodians of stable coins to maintain solvency? if you create a stable coin, and back it with treasuries, which the idea is they are completely safe, right? but what if treasuries become not safe.
just as bank notes were the first abstraction from gold, it seems like this is an abstraction from fiat. bank notes issued against gold had similar governance issues; who verified the gold deposits and that banks couldnt just print more certifica
Re: If you think 2008 was bad (Score:2)
Is the status quo even adequate? Not only are we in a position where basically two companies get to tell you whether you can accept payments at all if they determine that your business isn't socially acceptable, but they also gouge you pretty good just because they can.
This is a problem that is definitely in want of a solution. Cryptocurrency does seem like a viable solution. We've seen a few hiccups with it over the years, but I don't know of any technology that hasn't gone through such a period.
And I get
Re: (Score:2)
"Stablecoin" is just a euphemism for depositing money with X Corp. Except if you say "depositing" there are all kinds of pesky regulations. So they called them "gift cards." But there's a holdout group that thinks it's weird and maybe a bit dangerous to buy gift cards as an intermediate step between real money and shopping. But stable coins are this sexy freedom-loving amazing technology of the future and totally not a gift card, right?
Re: If you think 2008 was bad (Score:2)
Are you saying that a "stable" coin has value because it ties itself to a dollar with nothing but the words, "our coin has value, trust us, bro!"?
And is different from gift cards (Score:1)
how?
Re: (Score:2)
Some state laws require companies to allow gift cards to be exchanged for cash. Renaming something doesn't automatically get you out of laws, though. It depends heavily on how the wording in the laws actually describe gift cards because they always define any terms.
Could not happen to nicer people... (Score:3)
The Visa/MC payment processing fees are out of line with the costs of providing the service(s). It will be interesting to see if they choose to reduce those fees in order to keep the (then less profitable) business, or try to hold the line and potentially lose even more business as the major companies bypass them. In any case, one can be sure they are lobbying their congress critters to try to protect their business.
Re: (Score:2)
It's already been tried. In 2023 S. 1838 was introduced by Senator Durbin and from what I recall the credit card companies launched a huge political campaign against it. Even Forbes (spit) had an article on it. The argument against it was that it would lead to "reduced rewards" and somehow harm consumer security. We all know that that "1% cash back reward" is actually the credit card company charging the merchant a processing fee of like 3%, then tossing 1% back to the card holder. As a result, many places
THRILLHO (Score:2)
Give me [1]ECoin or [wikipedia.org] [2] GO TO HELL! [fandom.com]
[1] https://en.wikipedia.org/wiki/Mr._Robot
[2] https://simpsons.fandom.com/wiki/Bonestorm
Re: THRILLHO (Score:2)
Came here for this.
Monopoly (Score:2)
Visa and MasterCard do not compete with each other. They collude, and are effectively a monopoly.
If it takes issuing a corporate currency to break the mobopy, go for it.
Re: (Score:2)
They effectively collude. They don't actually have to talk to each other to accomplish this. Whatever Company A does, Company B knows they can get away with so they'll do it.
Since they have plausible deniability already, it doesn't necessarily matter if they are secretly directly talking to each other. Nobody is likely to prove it.
Horrible idea (Score:1)
If they want to reduce fees, just accept USDC and be done. Issuing your own coin is fraud unless you have enough capital and transparency to prove otherwise.
Re: (Score:2)
why should circle have the monopoly on stable coins?
Of Course (Score:3)
Now that it's ok for the grifter in chief it's ok for corporate America.
Sounds like a deal (Score:3)
There are around 350 million people in the USA. Every single one needs to have their own coins.
Re: Sounds like a deal (Score:2)
I would rather have Schrute bucks.
Really? (Score:2)
Why don't they just take the leap and develop their own alternative to Visa and Mastercard? Or there are these things called gift cards you know. But hey, anything to justify another $hitcoin. Maybe I should go out and buy some new Trump Bucks or whatever it's called. Maybe gift cards?
Here's an idea. If I have $1000 in USD and inflation is 2.5%/year, I effectively lose 2.5% buying power every year to inflation. If I put that in something that is inflation-adjusted (the typical example is gold but that isn't
Re: Really? (Score:2)
The real problem is the coin isn't currency, it's an investment. Just because you say it is something, doesn't make it true. You know if my uncle wears a dress that does not make him my aunt.
Re: (Score:2)
Did you know you can buy inflation-adjusted treasuries?
treasurydirect.gov
Stablecoin vs Gift Cards (Score:2)
I mean they and many others already have their own stable coin. It's called a gift card.
Walmart too lax on security to be allowed? (Score:1)
I had thought that Walmart was way too lax on actually taking any incentive on fighting fraud when it came to that fraud adding to its profits. Propublica did an article about this a year ago. Walmart as a financial or crypto company sounds like it could end up a dumpster fire. Could you trust Walmart with "looking out for its customers?"
[1]https://archive.ph/nP43H [archive.ph]
From the article.
"The FTC sued Walmart in 2022, alleging it “turned a blind eye” as criminals took advantage of its money transfer
[1] https://archive.ph/nP43H
Hell yeah (Score:2)
Bring back company script. /s
Re:Hell yeah (Score:5, Insightful)
That would, of course, be the Next Step: employees are only paid in company stablecoin, which can only be spent in the company store.
What's old is new again.
Re: Hell yeah (Score:2)
How many Stanley nickels for one walmart buck?