Why American Express Stock Flopped on Friday

Strong card pillar American Express‘s (NYSE: Axp) The stocks were looking for a little on the last day of trading in the week. The shares of the company lost more than 3 % of its value on Friday after a report in a higher financial newspaper regarding the potential defection of the important customer base. By comparison, and S & P 500 The index only decreased by more than 1 % on that day.

That morning, Wall Street Magazine He published an article stating that some of the largest American retailers are considering how Stablecoins use their business. Stablecoins are encrypted currencies that are linked to the fiber currency, such as the dollar, and are usually supported by relatively liquid money or securities.

Quoted from “people familiar with the matter”, the newspaper wrote that the companies influencing this sector, like Wal Mart and AmazonThey even think about their Stablecoins version. The magazine also informed the virtual online travel agency Expedia Group As a business that explores such an option.

The attractiveness of payment tools such as stablecoins is that if it is well implemented, they can save huge amounts of money in the fees. One of the main sources of the revenue of the cards payment companies is the small fees they impose on merchants who accept their cards, thus the AmeX negative reaction to the news.

To what extent does these efforts depend on the fate of the law of genius, a proposed law that makes its way through congress that would set an organizational framework for Stablecoins. If it succeeds in this through the legislative process and becomes a useful law, Stablecoins may become a tool for saving money for American retailers and customers.

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