Yesterday we reported that Walmart was looking into its own US dollar-backed digital currency.
Following the announcement of Facebook’s Libra in June, the news came as no great surprise and we should expect to see more companies filing patents for their own cryptocurrencies in the coming months. It is, however, a waste of time and resources for Walmart, according to CoinCorner CEO, Danny Scott.
“There are already a number of decent stablecoins out there, all doing exactly the same job. The likes of Walmart or Facebook are not bringing anything new to the table, they are just hoping that with a household name behind it, their coin will naturally succeed and become the default choice,” he says.
Facebook has opened up a can of regulatory worms and, as a result, the social media giant has admitted that it might not launch Libra. “This will be no different for Walmart or any other company – no matter how big, powerful or influential they are – that tries to do the same,” Scott argues.
“We remain unconcerned with regards to the risk that ‘Facebook Coin’ or ‘Walmart Coin’ or ‘The Next Big Company Coin pose a threat to Bitcoin. No matter how big the name behind these coins, for as long as there is a central authority with control, Bitcoin has no competition,” he concludes.