What’s going on here? Major retailers like Amazon and Walmart want to get cozy with stablecoins – and that budding interest could turn the digital tokens into something serious. What does this mean? Stablecoins are a specific type of cryptocurrency that have their value “pegged” to that of another asset – typically a regular currency like the US dollar, or gold. Theoretically, that should make stablecoins more, uh, stable than other kinds of cryptos. Amazon, Walmart, Expedia, and even some airlines seem convinced: they’re all looking into adopting stablecoins as a form of payment. That’d let them bypass card providers’ swipe fees, which can add up to billions of dollars a year. Plus, payments would be faster – settling in a matter of minutes, rather than days. It’s good timing: a bill that would regulate stablecoins is working its way through Congress right now. If passed, it’ll likely lead to wider adoption of the digital tokens. Why should I care? For markets: Friday the 13th is lucky for some… 📉 Investors ditched shares in Visa, Mastercard, PayPal, and American Express after the news. In fact, Friday was one of the worst days on record for Visa’s stock. 💰 That makes sense. If some of the world’s biggest firms offer alternative payment options, those four companies will miss out on billions. 💡 Unless, of course, they make a digital transition of their own – think integrations with blockchain technology. The bigger picture: America has that “je ne sais quoi”. Nearly all stablecoins are pegged to the US dollar – 95% of them, to be precise. That means dollar bills for America… literally. Issuers have to back each stablecoin with a real reserve, and they often pick short-term US government bonds. (They’re low risk and easy to buy and sell.) So as stablecoins become more mainstream, demand for dollar-denominated debt should increase. That’s got Europe jealous: officials are worried that too much funding will flow through US-backed systems, sidelining the euro. | 