Walmart Files Patent for Libra-Like Stablecoin

Retail giant Walmart has filed a patent for its own fiat-pegged digital currency in the United States.

Filed with the US Patent and Trademark Office (USPTO) on August 1, the application describes it as a process for “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 Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term; buying or paying the one digital currency unit.”

Similar to Facebook’s Libra, Walmart is also targeting the financially excluded population, bringing them closer to the organized financial ecosystem.

“Using a digital currency, low-income households that find banking expensive, may have an alternative way to handle wealth at an institution that can supply the majority of their day-to-day financial and product needs,” the retail giant noted.

Walmart detailed that the digital currency might be pegged to USD; however, the prospect was mentioned as one of the scenarios to back the Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term.

In addition, it will provide zero or no-fee platform to allow the users to store the currency, similar to Calibra wallet.

“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. 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,” the application detailed.

Major companies jumping to the crypto arena

Walmart’s filed the patent within two months of the announcement of Facebook’s ambitious crypto project Libra. However, since then, the social media company is facing the wrath of lawmakers and regulators around the world.

A report by a G7 task force also stated that projects like Libra could damage the existing financial stability of the world.