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The Almighty Buck

Walmart Could Be Looking To Rival Facebook's Libra With a USD-Pegged Stablecoin Issuance, Patent Filing Shows (theblockcrypto.com) 56

Retail giant Walmart could be working on issuing a fiat-backed digital currency, similar to Facebook's Libra cryptocurrency, according to a new patent filing. From a report: The filing, published by the U.S. Patent and Trademark Office (USPTO) on Thursday, outlines a method for "generating one digital currency unit by tying the one digital currency unit to a regular currency," meaning a fiat-pegged stablecoin. The blockchain-based digital currency "may be pegged to the US dollar," the filing adds, and maybe available for use "only at selected retailors or partners." It could also provide households with low income that find banking costly with a choice to "handle wealth at an institution that can supply the majority of their day-to-day financial and product needs," according to the filing.
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Walmart Could Be Looking To Rival Facebook's Libra With a USD-Pegged Stablecoin Issuance, Patent Filing Shows

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  • There will be a cherry on top.

  • by Anonymous Coward

    next up all employees to be payed with a pre paid debit card with walmart dollars or the amout in $ which ever is the lower value, no change given and no means of converting into hard cash.

  • Top Five Alternative Names for new WalMart Bitcoin:

    5) Blue-Light-Speculation

    4) Dis-Coin

    3) Everyone-Else-Has-A-Coin

    2) Trust-In-Me-Just-In-Me-Coin

    1) Not-Gonna-Lose-Ya-Money-Coin

  • The whole point of Facebook's currency is that it is NOT the USD. If they are to clone the USD, why not directly use the USD instead?

    • Re:what's the point? (Score:4, Interesting)

      by ShanghaiBill ( 739463 ) on Friday August 02, 2019 @05:30PM (#59031554)

      There are two points:

      1. Walmart can get interest free loans from their own customers. The crypto-coins are "tied" to the USD, but not backed by an actual dollar sitting in Walmart's bank account. You give them a dollar, and they give you a promise to give it back someday. They profit from the float.

      2. Walmart can issue credit and/or debit cards denominated in these coins.

      The first point is neutral. I don't care if Walmart gets interest free loans, and nobody is compelled to buy their coins.

      The 2nd point is GOOD. They can then bypass the MasterCard / Visa duopoly that is keeping transaction costs high. This will benefit both Walmart and their customers, and likely will benefit other merchants that agree to accept the cards.

    • Comment removed based on user account deletion
    • Stability I suppose. Bitcoins wild fluctuations in value make it kinda useless as a currency. Tying it to the US dollar or Euro is a move many countries have made to create stability in their currency. It doesnt always work though.

      Although Tax evasion is I suspect the real motor behind these corporate cryptocurrencies

      • Bitcoins wild fluctuations in value make it kinda useless as a currency.

        That is not true as long as people can convert within a matter of days or so, you just exchange what you have at whatever rate is current, then the person receiving can get real cash for about the amount they expect - it may be lower but then again it may be higher, so if you are making a number of transactions over time the downside is generally washed out or very slight.

    • by AHuxley ( 892839 )
      EBT in, US currency app company brand smartphone app shopping out.
      No % lost to other money "networks" to connect the store app to the US gov.
      No bank account/card, no money changer, CC % lost, big brand "OS" app wanting a %, network, social media, merchant fee between the US gov and the company smartphone spending app.
      Putting the company app back in store sale direct from the US gov.
      Thats a few extra % on every $ of spending the app moves from the US gov to the "company" app direct. Adds up at the end
  • Super creepy (Score:5, Insightful)

    by Lanthanide ( 4982283 ) on Friday August 02, 2019 @05:19PM (#59031490)

    This is super creepy:

    "It could also provide households with low income that find banking costly with a choice to "handle wealth at an institution that can supply the majority of their day-to-day financial and product needs," according to the filing.

    • by lorinc ( 2470890 )

      Like if having a monetary system controlled by a private company was not creepy right from the start...

    • by Mousit ( 646085 )

      This is super creepy:

      "It could also provide households with low income that find banking costly with a choice to "handle wealth at an institution that can supply the majority of their day-to-day financial and product needs," according to the filing.

      Maybe they'll call it ScripCoin, though that might be a little too on the nose.

      What's also creepy to me is the careful, almost psy-ops like PR wording though. "Low-income households" will be able to "handle wealth." Rather than just saying "money." I have no doubt that word was very carefully chosen, despite in practical usage being a general antithesis to low-income.

    • People who are too poor to have a bank account are not usually known as early adopters of complicated tech products. This seems redundant
  • padding their resume with silly patents. I used to work for a company that gave a $1000 cash bonus for every patent filed by an employee. If he wasn't a contractor the mail room guy would have had some.
  • by Ashthon ( 5513156 ) on Friday August 02, 2019 @05:41PM (#59031602)

    generating one digital currency unit by tying the one digital currency unit to a regular currency

    This describes exactly how arcade machines have worked for decades. You deposit regular currency and in exchange receive digital currencies which most arcade games refer to as "credits." You can then use those digital credits to play the game.

    Nothing else quoted in the article is remotely innovative or original.

    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

    You mean, like every other currency?

    Such accounts could even earn interest.

    Like a bank account?

    Digital currency may be tied to a national currency, such as the US dollar, so funds can be added or taken out easily. The digital currency value could, in some embodiment, be tied to other digital currencies.

    There are countless financial instruments which have a value that's linked to an underlying asset.

    There is literally nothing innovative or original here at all. Patents were supposed to reward innovation by granting a temporary monopoly, but now they're primarily used by large corporations to create a barrier to entry against smaller competitors, or by patent trolls to leech of other people's inventions and stifle innovation. Whatever you invent, you can be certain that either a large business or a patent troll will have a patent that can somehow be applied to your invention. At this point it's clear the patent system isn't working as intended and it may well be more beneficial to society to shut the system down entirely. Of course, it's unlikely that big business would ever let that happen.

    • You have a bank account that gives interest on digital currency?
    • Digital currency may be tied to a national currency, such as the US dollar, so funds can be added or taken out easily. The digital currency value could, in some embodiment, be tied to other digital currencies.

      There are countless financial instruments which have a value that's linked to an underlying asset.

      Interesting thing about that, this was pointed out to Facebook in a congressional hearing recently, in the form of something like "Why shouldn't Libra be regulated like an ETF?"

      The argument was "because it will be used as currency". I think Facebook genuinely means well, but it was funny hearing that argument. If that flies I have a great idea for a some super high interest subprime mortgage and payday loan derivatives ICO.

      I'm just kidding, that doesn't even begin to match the shadiness of an actual ICO.

  • So they have the 1:1 dollar parity down. Good. Now the only factor that anyone cares about to make this work is adding the Cryptonite currency style features where the transactions aren't actually publicly viewable. I don't know how they do it but I guess your private wallet key decrypts the proof that a transaction makes you the owner of some portion of existing coins or something. That's the flaw with bitcoins is once someone discovers your wallet address and ties it to you, EVERY SINGLE PURCHASE you ever

Keep up the good work! But please don't ask me to help.

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