Amazon To Enter Crypto Market With This Move: All You Need To Know

Recent reports revealed that Amazon has plans to roll out its own stablecoins. However, Jeff Bezos is not the only e-commerce billionaire eyeing the stablecoin segment.

Previous reports reveals that Alibaba co-founder Jack Ma was also leaning towards stablecoins through his company Ant International.

The latter recently applied for stablecoin licenses in Hong Kong and Singapore. Meanwhile, Hong Kong is slated to implement stablecoin regulations in August.

Back in the west, Amazon rival Walmart also expressed interest in joining the stablecoin rush, potentially as an issuer.

Why Amazon and other e-commerce giants could benefit from stablecoins

The company loses billions in payment finality fees to intermediates which include banks and card companies. This new move will reportedly allow it to cut down on fees.

Estimates suggest that Amazon loses anywhere between $5 billion to $10 billion annually from card processing fees.

Adopting a stablecoin approach may allow the company to boost its profit margins. This could be the biggest incentive why commerce giants are considering this approach.

However, there will be other benefits to adoption of stablecoins and blockchain technology for payment processing.

Amazon shoppers may enjoy more simplicity and lower fees when paying for products using the companys issued stablecoins. This approach will incentivize shoppers to hold and use the stableoins.

Other e-commerce companies may also adopt a similar strategy especially considering the other benefits that could be accrued.

For example, the approach could prove very effective in fraud prevention and facilitating transaction security.

It is worth noting that all that depends on whether the GENIUS act will be passed, paving the way for clarity on stablecoin regulation. Nevertheless, this likely outcome signals the changing global monetary order towards WEB3.

Here are the potential implications to adopting stablecoin payments

While the benefits of this new rush towards stablecoins were clear, the implications are also plenty, both positive and negative. For starters, e-commerce giants contribute heavily to payment company revenues.

This means Amazon and the cohort of other companies looking to become stablecoins might heavily dent revenues of card companies and banks.

On the other hand, this may encourage traditional payment companies to explore more opportunities in the rapidly growing crypto market.

Nevertheless, it is clear that stablecoin disruption is coming and it could rapidly affect multiple industries, with ecommerce at the forefront.

Speaking of disruption, the borderless nature of cryptocurrencies may also come into play as far as Amazons stablecoin bid is concerned.

The same goes for all ecommerce companies and beyond that have plans to adopt a stablecoin approach. Currency conversion costs might become a thing of the past for these companies.

For context, a shopper holding Amazons stablecoins may be able to shop and make payments with ease regardless of where they might be in the world.

Perhaps the most interesting aspect to consider about this is that Amazon and e-commerce only represent a fraction of the industries that may experience disruption.

It also demonstrates just how important stablecoins could become in the ongoing transition towards a global WEB3 ecosystem.

These expectations also underscore the importance of the upcoming stablecoin regulations. It will be interesting to see how things will play out in the coming years especially in terms of stablecoin adoption by mainstream companies.