This could be a huge step closer for Retailers & the consumer at embracing crypto/stablecoins benefitting both parties & a blow to banks / visa / Mastercard etc.

To have a better understanding of the difference between crypto & stablecoins Grok was kind enough to provide the requested info and explanation.

Cryptocurrencies and stablecoins are both digital assets on blockchains, but they differ in purpose and design:

- **Cryptocurrencies** (e.g., Bitcoin, Ethereum): These are decentralized digital currencies with values that fluctuate based on market demand and supply. They’re often used for investment, speculation, or as a store of value. Their volatility can lead to significant price swings, driven by factors like market sentiment, adoption, or news. For example, Bitcoin’s price can jump or crash by thousands of dollars in days.

- **Stablecoins** (e.g., USDT, USDC): These are cryptocurrencies pegged to a stable asset, usually a fiat currency like the US dollar, to minimize volatility. They aim for a 1:1 value (e.g., 1 USDT ≈ 1 USD) and are often backed by reserves (cash, bonds, or other assets) or algorithmic mechanisms. Stablecoins are used for transactions, remittances, or as a stable medium in crypto trading, avoiding the wild price swings of other cryptos.

**Key Differences**:

1. **Volatility**: Crypto prices are highly volatile; stablecoins aim for price stability.

2. **Purpose**: Cryptos are often for investment or decentralized apps; stablecoins are for payments, trading, or holding value without fiat conversion.

3. **Backing**: Cryptos have no inherent backing; stablecoins are typically backed by assets or algorithms to maintain their peg.

4. **Risk**: Cryptos carry high market risk; stablecoins carry risks like reserve mismanagement (e.g., Tether’s past scrutiny) or depegging (e.g., UST’s collapse in 2022).

Both operate on blockchains, but stablecoins prioritize stability for practical use, while cryptos embrace volatility for broader financial experiments. 

If Walmart & Amazon are successful & the Genius Act allows for these stablecoins, they could save $14 Billion Annually .

If the GENIUS Act is approved, Walmart and Amazon’s stablecoins could reduce banks’ transaction volumes and deposit bases while cutting into Visa and Mastercard’s interchange fee revenue. The immediate impact may be tempered by consumer adoption challenges and the card networks’ efforts to integrate stablecoin technology.  The exact outcome depends on the final form of the GENIUS Act, consumer behavior, and the pace of technological adoption.

A few of the American Banks are already thinking of introducing their own stablecoins for this very reason, and the share price of Visa & Mastercard dropped by 5-6 % on the news of Walmart & Amazon exploring the introduction of their own stablecoins.

The information provided is for educational purposes only , please do your own research before you invest in any crypto or stablecoins or if you're thinking of buying any shares in any of the mentioned businesses in this article.

Happy Trading Tiger Investors.