Walmart’s New Cryptocurrency-What You Need to Know…
Walmart is Set to Launch its Own Cryptocurrency
Retail giant Walmart has been trying for some time now to enter the financial space.
With the recent resurgence of cryptocurrencies, this may have just become possible.
Walmart’s Cryptocurrency may just be one of the tokens which will have massive usage.
This is because of the vast number of users and uses that the token will have.
The majority of the working poor in the United States use Walmart for one thing or the other.
As for the features of the cryptocurrency, read on!
Walmart has applied for a Patent for its Cryptocurrency
While this may not seem like a big deal for many, applying for a patent is the first major step in setting up your cryptocurrency.
At least this is what is obtainable in the United States.
This came from the filing:
“[The] method includes: generating one digital currency unit by tying the one digital currency unit to a regular currency; storing information of the one digital currency unit into a block of a blockchain; buying or paying the one digital currency unit.”
This of course that the cryptocurrency will operate very much like Tether or also like Facebook’s Libra.
The Cryptocurrency will be Pegged to the US Dollar
Going from the above description you can see that Walmart intends to peg its new cryptocurrency to some form of fiat money.
This, of course, would most likely be the United States Dollar.
While this may play out well for Walmart, regulators may have a hard time trying to accept the cryptocurrency-fiat money peg.
The other cryptocurrencies which are tied to fiat currencies are already having problems with regulators, Tether (USDT) being an example of note.
In reality, pegging the cryptocurrency to the US dollar will allow for some sort of stability as fluctuations in the value will be minimal.
However, the value of the cryptocurrency will always remain capped at the value of the US Dollar.
Also, such cryptocurrencies remain subject to inflation as fiat currencies always rise in inflation over time.
Will such a move be worth it in the long run?
Time will tell!
The Cryptocurrency will Employ Biometrics
To improve upon its loyalty program, Walmart intends to have a couple of “pre-approved” biometric features that will serve as a basis for identity.
Using those Biometric features, the Cryptocurrency will allow users to log on to the Walmart network blockchain and spend based on the preferences of the user.
Such preferences include shopping history, spending pattern and so on.
The use of biometrics as identification also points to the increasing use of Biometrics as a means of identification in financial transactions.
Combining it with Blockchain technology will, of course, give the technology a boost in terms of adoption.
The Cryptocurrency is aimed at the Working Poor
Most of Walmart’s customers across its over 11,000 retail outlets are individuals and families in the lower-income bracket.
The cryptocurrency will be aimed at this segment.
This is because the cost of banking and financial transactions when it comes to large concerns usually drops when an internal mechanism exists.
“Walmart coin” aims to use such an approach to be able to cater to the teeming number of shoppers who need to use many of its financial services at one go.
The use of the cryptocurrency will also standardize the financial system of the retailer once deployed.
This will allow for seamless deployment of new solutions across the board without too many issues.
Aiming the cryptocurrency at the working poor has a whole lot of advantages.
Firstly, from the patent description, cash isn’t the only form of exchange.
Paychecks are also going to be allowed to be a form of exchange.
This, of course, allows for cashing of paychecks and using some of the money on the paycheck to be able to shop for essentials and other needs without first cashing it then coming to shop.
The guys at Walmart sure do know how to make things easy!
The Cryptocurrency is Going to be Fully Exchangeable for the Dollar
After full exchange for the cryptocurrency has been achieved, Walmart intends for its cryptocurrency to be fully exchangeable for cash.
According to the patent application:
“The digital currency can provide a fee-free, or fee-minimal place to store wealth that can be spent, for example, at retailers and, if needed, easily converted to cash.”
This means that the regular Walmart user can do everything within the Walmart ecosystem.
So, apart from being pegged to the US Dollar, users may collect cash for their coins!
This, of course, means that the unbanked get reached uniquely.
Their problems get solved without having to enter the traditional banking system.
Walmart Coin isn’t Libra
Walmart is not Facebook Libra.
Facebook has always had global expansionist tendencies.
Walmart wants to work within the framework of its retailing operations.
Facebook has always had its privacy issues
Walmart, on the other hand, has been relatively low key though it has other patents to be able to listen in on co-workers and shoppers.
Walmart brings in far less controversy.
Almost everything that Facebook does is certain to draw controversy.
Walmart Coin isn’t a threat to Bitcoin and the Altcoins
Now, most people always say that when corporate organizations launch their cryptocurrencies, such cryptocurrencies become a threat to the others.
The truth is that most corporate cryptocurrencies have something which will stop them from blowing up: Central Control.
The real aim of peer to peer currencies is the removal of central control to allow the fluidity of the marketplace to thrive.
Centralized cryptocurrencies, however, take the bite out of cryptocurrencies.
As such, Walmart coin’s ability to change things will be limited by the control that Walmart’s management employs.
Whatever the odds, it is certain that Walmart Coin is going to be a welcome development to the crypto sphere.
What other features of Walmart coin do you know of that haven’t been covered here?
Please let us know about them in the comments below!