The Walmart Coin
Walmart is looking to make its way on the cryptocurrency scene with their coin. Many aren’t aware, but the supercentre giant has tried to enter the financial markets for more than a decade. They’ve never once succeeded in their financial goals, but with the upcoming Walmart Coin, this could all change. The Walmart Coin would allow for consumers to send a payment for items directly in-store or online, and it would also let customers send money to family and friends located at another Walmart store worldwide. If this venture pans through for the corporation, then it will mark their most successful entry into the finance market space.
How Walmart plans to create their upcoming cryptocurrency coin hasn’t been revealed. Technology companies around the world are offering crypto development services. It’s estimated that Walmart will work with a development company to bring its crypto coin to stores nationwide. Many are speculating if the company will maintain a crypto coin or a stable coin. Choosing a stable currency would be preferred, as it could be used correctly towards their products and stores. Choosing a crypto coin will make it available to the open public.
Walmart the Bank
The patent filed by Walmart also indicates that the company wants to become a banking service provider. This doesn’t mean bank accounts & insurance; it means loans for customers who can’t afford to purchase an item with Walmart. It would be an alternate form of financing, which will most likely be banned due to the loopholes it creates with finance legislation. Furthermore, Walmart offering loans out to the unsuspecting could create significant issues for the future.
This digital currency is pegged alongside the US Dollar, with the currency supposedly being available to retail and partners first. This is another condition listed in the patent, which from all accounts shows that the corporation is unaware as to what they want to do with the Walmart Coin. It’s estimated that at first, the coin is going to be incredibly limited and that it’ll take upwards of a decade for Walmart to accomplish all the goals listed in the patent.
The way that Walmart plans to earn money from this Stable or Crypto coin is by charging holders of the currency an interest rate. It’s unknown as to what the interest rate will be, but it’ll surely be high. This has already caused numerous questions from policymakers and financial regulators in the United States of America. The reasoning for this is because the premise of the Walmart coin is considerably different than Libra. It’s speculated that policymakers will release legislation that forces Walmart to maintain a low-interest rate.