Retail giant Walmart is planning to develop their own blockchain-protected digital currency named ‘WMT’, a USD pegged stable coin. According to the patent filed on 2nd Aug 2019, the users of digital currency can buy goods/services at selected retailers/partners.

Source: U.S. patent and trademark application database ID # US020190236564A1.

The digital currency can provide a fee-free, or fee-minimal transaction spent at selected partners and in the ecosystem environment. For example, use digital currency to buy supplies at stores or through a supply distribution center.

To store the currency and easily exchange, a mobile wallet will be provided, kind of a micro-bank account. Such accounts could even earn interest. Using this, users can easily convert the stored digital currency into cash and can purchase ‘WMT’ digital currency with fiat or other digital currencies like Bitcoin.

The flow chart illustrates the Walmart digital currency mechanism

How it benefits user (or customer):

To create adoption, Walmart plans to create a reward program. For each unit of digital currency a person spends or earns, the person would receive rewards(or discounts) toward other purchases.

Additionally, the retailer also plans to provide digital currency (or retail product) futures. Customers using digital currency can buy goods for the future at the price that exists on that day. This could be a better way for customers to guarantee purchasing power even if prices go up, while at the same time offering a predictable source of revenue for retailers.

How it benefits Walmart:

Users purchasing history (shopping list) will be logged in Walmart’s blockchain ledger. Using AI and big data analysis, the retailer can analyze users purchasing behaviors or habits (e.g. preferences, budget). Such analysis can help to draw a probability that a customer will order a given product at a given store within a given timeframe.

This will allow accurately forecast on future supply demands at their stores leading to optimizing inventory and thus, effective handling and saving cost. Some of the cost saved can be shared with the customer when they buy goods that were accurately predicted.

Expect its use may come with restrictions. Like on what product categories digital currency use is allowed, price limitations for purchase and by whom. Therefore, users may have to go through KYC to buy the digital currency.

The above aspects could make WMT digital currency more valuable than the equivalent dollar in the bank account or Facebook coin.

To know more about Walmart’s patent application, check the U.S. patent and trademark database.

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