Walmart Filed Patent for Digital Coin Creation
The retail giant may follow the example of Facebook in launching a dollar-pegged coin based on a mode of blockchain production.
Walmart coin may be in the works - or at least the US retail giant has filed a patent application for the creation of a digital asset based on a form of block production. This is the fourth blockchain-related patent for Walmart. The Walmart patent filing would include:
“A method include: 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; determining whether restrictions are applied to the one digital currency unit by referring to one or more documents associated with the one digital currency...”
The filing is all-encompassing and very general when it comes to the features of a digital asset to serve the purposes of Walmart. It is unknown whether the asset would be used widely or reserved for selected counterparties, as the filing suggests:
“The digital currency may be pegged to the US dollar and available for use only at selected retailors or partners. In other embodiments, the digital currency is available for use anywhere.”
With this tentative description, Walmart is closer to the approach of JP Morgan, which is using a permissioned, private blockchain and an asset reserved for pre-approved counterparties. Facebook, on the other hand, had already envisioned the way its blockchain would exist - as the result of the work of the members of the Libra Association, which would also be block producers.
Even now, there are multiple ways for anyone to launch a blockchain with no permission. However, regulators are worried about blockchain-based assets, which could circumvent monetary policy or hurt the personal finance of holders.
The approach of Walmart, however, is to use its suggested digital asset as a form of in-store incentive system, potentially rewarding volunteering, part-time jobs, or donations. But the most interesting use case would be a form of microbanking, where users could build a balance directly with Walmart, to buy some of the store’s offers.
“In some embodiments, digital currency may be used for a currency micromarket. As used herein, the micromarket may refer to an unattended retail environment where consumers can purchase products from open shelves, coolers, or freezers and use a self-checkout kiosk to pay for their products. Customers without traditional bank accounts can create a microbank at an institution such as a retailer, which gains interest while their money is there,” the filing suggests.
Walmart may even start accepting Bitcoin (BTC) in exchange for its in-store digital asset. At this point, it is unknown if Walmart will ever be able to create its digital coin, and if the building of a blockchain would add anything to what looks like a loyalty point program or another type of inventive mechanism.