Walmart Takes Steps Toward Creating A Digital Coin
Walmart has filed a patent application for a “digital asset” that would be based on a type of block production, according to reports.
The patent marks Walmart’s fourth blockchain-related patent. The patent application said the initiative would be:
“… 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 explains how the coin would be used in a general sense.
“The digital currency may be pegged to the U.S. dollar and available for use only at selected retailers or partners. In other embodiments, the digital currency is available for use anywhere.”
This means Walmart’s coin would be closer to the type of digital currency that JPMorgan is building, which would use a private and permissioned blockchain. The asset would be meant for pre-approved counterparties. Facebook, which proposed the digital currency Libra, would create the Libra Association and have it produce its own block.
Walmart wants to use its coin as more of a way to incentivize in-store customers or to reward donations, volunteers or part-time employees. However, the retail giant also mentioned microbanking as a feature of the potential digital coin.
“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 said.
There’s also the possibility that Walmart could start accepting bitcoin and exchange it for its own digital currency offering.