As someone in tech, but not crypto, I don't see the point. Not even from a grifter perspective. These are stablecoins, so they don't gain value. Walmart is unlikely to go out of business, but it's...
As someone in tech, but not crypto, I don't see the point. Not even from a grifter perspective.
These are stablecoins, so they don't gain value. Walmart is unlikely to go out of business, but it's more likely than the US dollar collapsing (I think...). Why would I use Walmart coin instead of USDT? Why would Walmart use Walmart coin instead of USDT?
In the article:
Stablecoins could allow merchants to circumvent traditional payment rails, which cost them billions of dollars in fees each year, including the interchange fee they pay when customers make purchases using their cards.
Payments can take days to settle, delaying the time it takes for merchants to receive the proceeds from sales. Stablecoins offer the possibility for a quicker process. They could be of particular interest to merchants with suppliers who are located abroad.
But that doesn't explain why they don't use an existing stablecoin. Later:
The companies have also weighed how to use outside stablecoins, some of the people said, even if they decide not to pursue their own. That could be through a consortium of merchants led by one stablecoin issuer, for example.
Kind of sounds like a combination of gift cards and loyalty programs. You buy credit - or probably better you have a recurring subscription - so that locks you into their store, they get paid out...
Kind of sounds like a combination of gift cards and loyalty programs. You buy credit - or probably better you have a recurring subscription - so that locks you into their store, they get paid out ahead of purchases, and I'm sure lots of coin will sit unspent. Win win win for them.
My gut is telling me that they are looking to circumvent regulations or manipulate something. If they do get rid of gift cards they might be doing it to get out of laws requiring them to return...
My gut is telling me that they are looking to circumvent regulations or manipulate something. If they do get rid of gift cards they might be doing it to get out of laws requiring them to return the cash value in some
States, for example.
This sounds pretty convincing. Each credit card purchase you make sends 2-4% of the money to the payment processor. If Walmart can find a way to take your money directly, in the form of these...
Stablecoins could allow merchants to circumvent traditional payment rails, which cost them billions of dollars in fees each year, including the interchange fee they pay when customers make purchases using their cards.
This sounds pretty convincing. Each credit card purchase you make sends 2-4% of the money to the payment processor. If Walmart can find a way to take your money directly, in the form of these stablecoins, they can redirect these fees to themselves. They'd also need to offer a rewards program that makes this more appealing than a normal credit card, so it'd probably be a win for consumers too.
Combine that with dragging you into the walmart ecosystem, if you go through the effort of setting up the stablecoin to buy stuff at Walmart, you're probably more likely to go shopping there than try to do something similar with every other store.
If it is a stablecoin then you will be able to sell it for cash, that's how stablecoins work, so it would actually make cashing out gift cards easier. No need to go into a store and make sure you're in the right state, just do it online.
How can they take your money directly. To buy the stable coins, you need to transfer money from your bank account to an exchanges bank account, so they get but with a fee then. To make this work...
How can they take your money directly. To buy the stable coins, you need to transfer money from your bank account to an exchanges bank account, so they get but with a fee then. To make this work as a monetary transfer vehicle, they would need to own a bank so the exchange becomes free.
Eg.
You open a bank with Amazon Bank that also gives you a stable coin wallet with free or lower than Credit Card fee for transferring money back and forth between the USD account and stable coin account.
To make that work though, they'd need to offer a discount for using their coin.
Crytpo exchange fees typically aren't 0, but they're pretty low. 0.1 to 0.25% ballpark. Assume average credit card fees are 3%, and that on average a consumer gets 1.5% cashback. This will...
Crytpo exchange fees typically aren't 0, but they're pretty low. 0.1 to 0.25% ballpark.
Assume average credit card fees are 3%, and that on average a consumer gets 1.5% cashback. This will obviously vary since cashback programs are not constant, but regardless the net fee taken by the CC company is much higher than the 0.1-0.25% that's taken by a crypto exchange.
Walmart will need to offer some discount or cashback program to make the coin worth it, yes, but they can do this and still be more effective than the credit card companies.
Generally, you don't want friction when a customer is purchasing. Having the customer do two transactions to execute a purchase is a lot of friction. Which is why I think this only works if it's...
Generally, you don't want friction when a customer is purchasing. Having the customer do two transactions to execute a purchase is a lot of friction. Which is why I think this only works if it's embedded with a bank account. Amazon and Walmart are large enough that they could buy a small bank or start their own. Use the coin to work around ACH and if other retailers adopt it too it would put pressure on credit card companies to power fees.
I don't know why they want a coin at all, except maybe some new tax avoidance stuff under Trump or something. But why not to use USDT: there is evidence suggesting it isn't backed. I wouldn't put...
I don't know why they want a coin at all, except maybe some new tax avoidance stuff under Trump or something. But why not to use USDT: there is evidence suggesting it isn't backed. I wouldn't put any of my own money in it because I personally don't believe it is backed and so will eventually implode like any other ponzi-like scheme. I'd assume these big businesses want even harder to avoid that risk of value wipeout.
My belief is that USDT managed the incredible feat of setting up a ponzi-scheme that doesn't even offer returns. All they really needed to do was not spend the money, but I think that large portions, maybe even most of it, is now gone.
Similar to gift cards, this is a way for a merchant to get an interest-free loan from their customers. However, gift cards balances aren't normally refundable, which protects the merchant. They...
Similar to gift cards, this is a way for a merchant to get an interest-free loan from their customers.
However, gift cards balances aren't normally refundable, which protects the merchant. They even make money on "breakage" from gift cards that are never redeemed. Stablecoins are more limited in how the merchant can invest the money, due to the risk of a bank run.
Edit: updated link works. Archive link isn't working. It's showing the same thing the actual page does (cut off the article where it prompts for login).
Edit: updated link works.
Archive link isn't working. It's showing the same thing the actual page does (cut off the article where it prompts for login).
If the stablecoin is equivalent to a dollar and could be used for payroll, and could be easily spent at Amazon or converted to actual dollars with a cost and effort, they're locking their...
If the stablecoin is equivalent to a dollar and could be used for payroll, and could be easily spent at Amazon or converted to actual dollars with a cost and effort, they're locking their employees into paying a fee to shop anywhere else.
there’s no indication that Amazon would use this for payment of their employees the key behind company scrip is the lack of liquidity, but Stablecoins are definitionally liquid if they’re actually...
there’s no indication that Amazon would use this for payment of their employees
the key behind company scrip is the lack of liquidity, but Stablecoins are definitionally liquid if they’re actually pegged correctly
if you wanted to do this you can just try to pay people with Amazon store credits, which exist without the faff.
The only reason Amazon would want a “stablecoin” is that it would be perceived to be more liquid than company credit.
I don't think they'd be legally allowed to use it for payroll. At most maybe random bonuses, like how I've been awarded gift cards in my time at Amazon. As far as I know they need to pay employees...
I don't think they'd be legally allowed to use it for payroll. At most maybe random bonuses, like how I've been awarded gift cards in my time at Amazon. As far as I know they need to pay employees in what the IRS takes though.
Wages have to be paid in cash or negotiable instrument payable at par. I'm not a lawyer, but a stablecoin definitely sounds like it fits that second category.
Wages have to be paid in cash or negotiable instrument payable at par. I'm not a lawyer, but a stablecoin definitely sounds like it fits that second category.
As someone in tech, but not crypto, I don't see the point. Not even from a grifter perspective.
These are stablecoins, so they don't gain value. Walmart is unlikely to go out of business, but it's more likely than the US dollar collapsing (I think...). Why would I use Walmart coin instead of USDT? Why would Walmart use Walmart coin instead of USDT?
In the article:
But that doesn't explain why they don't use an existing stablecoin. Later:
Kind of sounds like a combination of gift cards and loyalty programs. You buy credit - or probably better you have a recurring subscription - so that locks you into their store, they get paid out ahead of purchases, and I'm sure lots of coin will sit unspent. Win win win for them.
My gut is telling me that they are looking to circumvent regulations or manipulate something. If they do get rid of gift cards they might be doing it to get out of laws requiring them to return the cash value in some
States, for example.
This sounds pretty convincing. Each credit card purchase you make sends 2-4% of the money to the payment processor. If Walmart can find a way to take your money directly, in the form of these stablecoins, they can redirect these fees to themselves. They'd also need to offer a rewards program that makes this more appealing than a normal credit card, so it'd probably be a win for consumers too.
Combine that with dragging you into the walmart ecosystem, if you go through the effort of setting up the stablecoin to buy stuff at Walmart, you're probably more likely to go shopping there than try to do something similar with every other store.
If it is a stablecoin then you will be able to sell it for cash, that's how stablecoins work, so it would actually make cashing out gift cards easier. No need to go into a store and make sure you're in the right state, just do it online.
How can they take your money directly. To buy the stable coins, you need to transfer money from your bank account to an exchanges bank account, so they get but with a fee then. To make this work as a monetary transfer vehicle, they would need to own a bank so the exchange becomes free.
Eg.
You open a bank with Amazon Bank that also gives you a stable coin wallet with free or lower than Credit Card fee for transferring money back and forth between the USD account and stable coin account.
To make that work though, they'd need to offer a discount for using their coin.
Crytpo exchange fees typically aren't 0, but they're pretty low. 0.1 to 0.25% ballpark.
Assume average credit card fees are 3%, and that on average a consumer gets 1.5% cashback. This will obviously vary since cashback programs are not constant, but regardless the net fee taken by the CC company is much higher than the 0.1-0.25% that's taken by a crypto exchange.
Walmart will need to offer some discount or cashback program to make the coin worth it, yes, but they can do this and still be more effective than the credit card companies.
Generally, you don't want friction when a customer is purchasing. Having the customer do two transactions to execute a purchase is a lot of friction. Which is why I think this only works if it's embedded with a bank account. Amazon and Walmart are large enough that they could buy a small bank or start their own. Use the coin to work around ACH and if other retailers adopt it too it would put pressure on credit card companies to power fees.
I don't know why they want a coin at all, except maybe some new tax avoidance stuff under Trump or something. But why not to use USDT: there is evidence suggesting it isn't backed. I wouldn't put any of my own money in it because I personally don't believe it is backed and so will eventually implode like any other ponzi-like scheme. I'd assume these big businesses want even harder to avoid that risk of value wipeout.
My belief is that USDT managed the incredible feat of setting up a ponzi-scheme that doesn't even offer returns. All they really needed to do was not spend the money, but I think that large portions, maybe even most of it, is now gone.
I'm guessing they don't trust the stability of existing "stable"coins.
Similar to gift cards, this is a way for a merchant to get an interest-free loan from their customers.
However, gift cards balances aren't normally refundable, which protects the merchant. They even make money on "breakage" from gift cards that are never redeemed. Stablecoins are more limited in how the merchant can invest the money, due to the risk of a bank run.
Archive link: https://archive.is/NKD5H
Edit: updated link works.
Archive link isn't working. It's showing the same thing the actual page does (cut off the article where it prompts for login).
Thank you, try the new one?
That one works, thanks. I know these paywalls are a cat and mouse game sometimes...
Hey kids! You know what's hip and cool again? Company scrip!
How is it similar to company scrip at all?
If the stablecoin is equivalent to a dollar and could be used for payroll, and could be easily spent at Amazon or converted to actual dollars with a cost and effort, they're locking their employees into paying a fee to shop anywhere else.
there’s no indication that Amazon would use this for payment of their employees
the key behind company scrip is the lack of liquidity, but Stablecoins are definitionally liquid if they’re actually pegged correctly
if you wanted to do this you can just try to pay people with Amazon store credits, which exist without the faff.
The only reason Amazon would want a “stablecoin” is that it would be perceived to be more liquid than company credit.
I don't think they'd be legally allowed to use it for payroll. At most maybe random bonuses, like how I've been awarded gift cards in my time at Amazon. As far as I know they need to pay employees in what the IRS takes though.
Wages have to be paid in cash or negotiable instrument payable at par. I'm not a lawyer, but a stablecoin definitely sounds like it fits that second category.
Coinbase has let employees choose percent of their pay in USD vs BTC for years, there's definitely precedent
am i missing something, is this not just gift cards? lmao
Gift cards have regulations around their use and expiration. Stablecoins are only as regulated as the developer wants them to be.