- Jaret Seiberg says Walmart’s coin will face less criticism.
- The coin may be similar to gift cards at the initial stages.
Regulators and global authorities might take a softer approach towards the potential digital asset developed by the retailer, according to Jaret Seiberg, a senior policy analyst at Cowen.
The expert believes that Walmart’s stablecoin will face less criticism that Facebook’s Libra as it offers an alternative to people with limited access to banking services. The idea may appeal to Democrats focused on providing equal possibilities to the unbanked.
According to the patent filed by Walmart, the stablecoin will be pegged to the US Dollar, while Libra coin is supposed to be backed by a basket of fiat currencies. Also, according to Seiberg, the functionality of the coin proposed by the retailer will be similar to gift cards.
However, Seiberg emphasized that Walmart’s digital offering might be regarded as a threat to small banks and credit unions. It means that it is still likely to face some criticism in Congress.
However, the regulatory pressure is unlikely to stop Walmart from creating its digital asset.
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