Regulatory clarity is critical for these companies to proceed with their stablecoin plans, as the current lack of a legal framework has deterred broader adoption.

The implementation of these stablecoins hinges on the passage of the GENIUS Act, which is currently moving through Congress and aims to establish a regulatory framework for stablecoins.

Walmart and Amazon are exploring the issuance of their own stablecoins, a move that could transform the payments ecosystem and save billions in transaction fees.

Proponents of the GENIUS Act, including Senator Bill Hagerty, argue that it will protect consumers, encourage innovation, and strengthen the U.S. dollar's global position.

Walmart's significant e-commerce sales, which exceeded $100 billion in 2023, underscore the potential impact of stablecoins on its operations and payment strategies.

Stablecoins, designed to maintain a stable value often pegged to traditional currencies like the U.S. dollar, offer faster transaction times and lower fees, making them attractive for high-volume merchants.

This initiative could shift a large volume of cash and card transactions outside the traditional financial system, potentially yielding substantial savings in transaction costs.

Walmart has been actively lobbying for reforms to credit card regulations, aligning its push for stablecoins with its broader strategy to increase competition against credit card companies.

The stablecoin market is growing, with predictions that dollar-pegged stablecoins could reach a market capitalization of over $2 trillion, reflecting increasing institutional interest.

Reports indicate that Walmart and Amazon's plans for stablecoins signal a growing institutional interest in this area as regulatory clarity improves in the United States.

Both retail giants are in the early stages of their exploration, considering either developing their own stablecoins or partnering with existing third-party stablecoin providers.

In a related development, Uber's CEO announced that the company is in the 'study phase' of potentially accepting stablecoins for payments, highlighting the trend towards digital currency adoption.