Walmart Wants to Patent a Stablecoin That Looks a Lot Like Facebook Libra

Retail giant Walmart has applied for a cryptocurrency patent that bears some similarities to the Libra token proposed by Facebook in mid-June.

In its application with the U.S. Patent and Trademark Office, Walmart touts the concept of a digital currency "Tied to a regular currency" - that is, what's commonly known as a stablecoin.

Libra will be a token pegged to a basket of fiat currencies and government bonds, according to Facebook.

"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," Walmart states.

Facebook's offering is expected to create a system whereby its social media platforms could use Libra for payments, allowing advertisers to earn Libra and pay Facebook in the token for ads.

"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."

With Libra, interest earned on the scheme's potentially vast reserve funds would go to Libra partners that back the company to the tune of around $10 million.

More closely applying to a commerce giant Walmart says its token could store user's purchasing histories on the blockchain, and then apply related savings to their subsequent purchases in a similar way to loyalty points.

The token could also be used to restrict what product categories can be bought and by whom, for example blocking minors from purchasing cigarettes, alcohol, or an R-rated DVD. Walmart is already using blockchain for tracking products like fresh greens and pharmaceuticals.

In June, Walmart China launched a live scheme aimed to improve the nation's poor food safety record.