Former SEC Secretary-General warns: "Walmart and Amazon stablecoins may pose negative impact on consumers"

The former Secretary-General of the U.S. Securities and Exchange Commission (SEC) pointed out that the introduction of stablecoins by major retailers such as Walmart and Amazon could have a significant negative impact on the market and consumers.

On the 14th (local time), Amanda Fischer, former SEC Secretary-General, explained this on X (formerly Twitter) by comparing Starbucks' prepaid cards with the adoption of stablecoins by these companies.

She stated, "Starbucks' prepaid cards currently have about $2 billion in unused balances, which effectively means consumers are lending money to Starbucks for free." She further commented, "Likewise, if Walmart and Amazon adopt this model, consumers would essentially be providing interest-free loans to these companies."

She also emphasized that while Starbucks prepaid cards are currently regulated by the Consumer Financial Protection Bureau (CFPB), the recently discussed stablecoin bill in Congress would exclude such payment methods from CFPB oversight, leaving them in a regulatory blind spot.

Fischer also hinted at the potential negative impact on independent retailers. She said, "Walmart and Amazon could utilize consumer deposits as low-cost capital, gaining a competitive edge over other retailers who do not adopt stablecoins." She added, "If Amazon and Walmart mandate payments via their own stablecoins, independent sellers may either have to pay fees to exchange into dollars or face disadvantages in search exposure unless they maintain a certain balance."

She further analyzed, "The more money consumers deposit in retailer apps, the less funds are deposited in commercial banks, reducing the community's lending capacity, which could in turn negatively impact economic growth and the real economy."