Walmart, the American multinational retail giant is making a much-anticipated move into the crypto space. A new Walmart cryptocurrency patent application filed recently will likely give an edge to the retail giant in a competitive landscape.
The patent application is about a cryptocurrency pegged to a currency or asset, with its own blockchain. This indicates that Walmart is planning to launch a stablecoin.
For quite some time now, Walmart is locked in an intense competition with Amazon in the retail space. Naturally, the retail giant is looking for a clear differentiator, and the company seemed to have zeroed in on crypto as a competitive tool.
The crypto market sees plenty of volatility, therefore, the emergence of Stablecoins is an important innovation in this space. Stablecoins are typically pegged to a currency like USD, alternatively, a Stablecoin issuer might peg it against a tangible asset like gold.
The volatility in the crypto market is a key challenge for crypto adoption since crypto users can’t easily use it in their day-to-day transactions. It’s hard for merchants to accept a form of currency that sees frequent fluctuations in its price, and this is where Stablecoins assume importance.
The issuers of Stablecoins use specialized algorithms on their blockchain networks to maintain their price stability. These algorithms can work in various ways, e.g., they might destroy coins when the price of the Stablecoin falls below a threshold, and create new coins when it rises beyond a threshold.
The new Walmart Stablecoin
The patent application by Walmart proposes a Stablecoin, and the company foresees various possibilities with respect to this new Walmart cryptocurrency. For e.g., the company could offer savings on purchases to its customers via its crypto token.
Walmart believes that its cryptocurrency could bring banking services closer to its customers from the lower-income segment, who might otherwise not have access to robust financial services. Considering the customer base of Walmart, they might be able to help a significant number of people this way!
The retail giant foresees other use of its Stablecoin, e.g., a freelancer platform, emergency loans, etc. Given the nature of Walmart’s businesses where many customers use credit facilities, the Stablecoin could come handy there.
Walmart might also be able to use its proposed Stablecoin for managing its loyalty program. The retail giant is bullish on blockchain, e.g., they have filed a patent for blockchain-powered retailer marketplace while another blockchain patent application from the company deals with automated delivery fleets.
A momentous crypto move?
Could the proposed Walmart cryptocurrency give the retailer the edge it’s looking for? Given its moves in the blockchain space, Walmart will likely make a big push with its proposed Stablecoins, therefore, interesting times are ahead for the retail space!