DeutschWhat will Walmart do for crypto adoption? Before we take a closer look at that, let’s look at the development of the industry. First, Bitcoin was just something for nerds. Then the media said that cryptocurrencies were only used by criminals for money laundering. Whether cryptocurrencies were initially more of a thing for nerds or, in retrospect, for revolutionaries, is debatable. There is no question that anonymous means of payment could be used for criminal activities. However, cash or other digital payment options do not offer protection against criminal activities either. On closer inspection, pseudo-anonymous cryptocurrencies such as Bitcoin even make it more difficult to remain completely anonymous.
A lot has happened since the release of Bitcoin in 2009. As I said: from a nerd project to criminality to legal tender in El Salvador. For many, cryptocurrencies are still just a bubble that will burst one day. Others, however, see Bitcoin as an alternative to gold. There is no store of value that can be used as easily as Bitcoin as a means of payment. Trying to pay at the checkout with gold, stocks or real estate is anything but easy compared to Bitcoin.
Although you can’t pay with cryptocurrencies everywhere yet. However, the shops that support cryptocurrencies are continuously increasing. In addition, Visa Inc. is launching a crypto consulting service, the Sparkassen-Finanzgruppe in Germany is voting on the introduction of Bitcoin and the software company MicroStrategy now has well over 100,000 Bitcoin worth over 5 billion US dollars financed with bonds. It is also worth mentioning that Bitcoin is now legal tender in El Salvador.
However, companies are increasingly moving into the foreground as part of crypto adoption. Amazon or Apple have published job advertisements with which they are looking for people with blockchain expertise. However, one company that is currently doing unprecedented work here is actually Walmart.
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Sleeping on the Internet – Crypto the New Opportunity?
When we think of the leading companies, we look at Apple, Amazon, Microsoft, Alphabet (Google’s parent company) or Meta (formerly the Facebook Group). It is no wonder that these are tech giants who were able to assert themselves in the course of digitization and (among other things) through the Internet.
In Germany, companies such as Galeria Kaufhof or Karstadt come to mind, which could not keep up with the suddenly emerging power of the Internet and Amazon. Walmart also did not seize the opportunity early enough. This allowed Amazon to grow in peace and is now unstoppable. Amazon now serves so many divisions with continued huge development potential. The acquisitions of Amazon competitors such as jet.com do not help Walmart either. Even though Walmart has now been able to gain a lot of ground in the e-commerce sector, it has not used a lot of potential.
However, the two companies based in Germany, Galeria Kaufhof or Karstadt, have not weathered the crisis so well. The former competitors even merged to form Galeria Kaufhof Karstadt in the course of the crisis. Many other companies have already completely lost the competition against online companies.
The Internet was underestimated for a long time. Even though the Internet has become increasingly important, its importance has increased exponentially in recent years. The cryptocurrency sector is experiencing a similar development. Initially smiled at, now recognized by the very large institutions – even if the doubts are still there. If the scaling problem should be solved in the foreseeable future, blockchain technology should record an even faster increase.
Walmart also slept on the Internet for a long time. In the cryptocurrency sector, Walmart now sees the opportunity to get ahead of the competition around Amazon.
Walmart Plans Cryptocurrency, NFT and Entry into the Metaverse
As can now be seen from documents submitted to the Patent and Trademark Office in the USA, the retail giant Walmart has submitted a total of seven forms that deal with an expansion of business in the cryptocurrency sector. Primarily, it is about creating a metaverse and selling Non-Fungible-Token (NFT).
In the past, NFT has been used primarily by game developers. But TikTok, McDonalds or Burger King have already launched their first NFT collections. Meta is still working on its own stablecoin Diem and has already started the pilot phase of the Novi wallet.
However, at Walmart it does not seem to be just an NFT collection. Instead, the company also wants to launch its own virtual currency. In fact, this is not even new information. Walmart had already filed a patent for the creation of a stablecoin in 2019. However, there had been no further information on this later.
Bitcoin ATMs in Walmart Stores
In 2020, Walmart generated a proud 560 billion US dollars. The company’s stores are still deeply integrated into the everyday life of US citizens. But Walmart is also active in Great Britain, Mexico or Japan. Just a few months ago, the group announced that it would set up Bitcoin ATMs in 200 selected stores. These are Bitcoin ATMs with which the purchase and sale of BTC should also succeed in stationary retail.
People who have not had anything to do with the cryptocurrency sector and may only view Bitcoin as the currency of criminals through old media statements are now confronted with the crypto world in everyday life. Bitcoin is no longer just something that exists on the Internet. Despite its purely virtual existence, BTC appears real and tangible through Bitcoin ATMs in retail. Even if crypto ATMs are (still) not recommended in principle due to the high fees, adoption is being driven forward by very simple means.
Job Advertisement for People with Blockchain Expertise: Walmart is Looking
In principle, a company can of course still fail if it wants to break new ground. Expertise is necessary to minimize the risk as much as possible. The fact that companies like to fill vacancies internally could backfire in a new sector such as cryptocurrencies and blockchain technology. Walmart is clearly taking the right path here and is explicitly looking for personnel with sound knowledge. Without the necessary know-how, Walmart will only be able to keep up when it comes to the innovative use of blockchain technology.
Walmart and the Litecoin Hoax
The fact that cryptocurrencies can also damage a company’s image (the reverse is also true), was shown in September in a case that is probably unparalleled. On September 13, an official press release suddenly went online, reporting on the introduction of Litecoin as a means of payment in the Walmart online shop. Suddenly, the price of Litecoin (LTC) rose by around 35 percent within an hour. Just as quickly, the cryptocurrency, which was long considered “digital silver”, went back down after Walmart suddenly denied this message.
In any case, many crypto enthusiasts had asked themselves why Walmart would want to rely on Litecoin of all things. Walmart itself had nothing to do with this message. Nevertheless, the legitimate question was asked how a press release from such a large company could be faked. In addition, this circumstance also did not paint a good picture of the crypto market, as the sudden rise and fall certainly caused many investors to lose their invested capital. Ultimately, it was just a market manipulation, which should occur just as little in the cryptocurrency sector as in the rest of the financial market.
Walmart also Puts Pressure on the Competition
Walmart is not the only company that is looking for support in the form of people with blockchain expertise, for example. Amazon and Apple are also taking this path. Amazon has risen through the Internet and has made Walmart look old in the process. Nevertheless, Walmart is ahead of the online giant Amazon in terms of sales. This does not change the fact that Amazon has a higher corporate value. Amazon also has massive advantages due to the cloud business and the Prime concept. Own fleets are still under construction.
So how can companies like Walmart defend themselves against this growth? This is only possible with innovations. The cryptocurrency sector currently offers exactly this potential. This also puts pressure on the competition. Can a company afford not to introduce cryptocurrencies if Walmart, a corporation with more than 500 billion US dollars in sales, does? Almost incidentally, Meta is also put under pressure. Meta’s Stablecoin Diem is already in the starting blocks, but does not enjoy a good reputation within the cryptocurrency sector.
Tesla’s Bitcoin Path Was Counterproductive and yet Important
Other companies also caused a lot of excitement in 2021. The most prominent example here is certainly Tesla. CEO Elon Musk enjoyed a cult status in the cryptocurrency community for a long time. He fueled the price of the meme currency Dogecoin, introduced Bitcoin as a means of payment at Tesla and suddenly reversed this decision two months later. He then caused many confusing tweets to cause many within the crypto scene to publicly criticize Musk. He would unnecessarily influence the Bitcoin price. By the way, Musk cited Bitcoin’s excessive energy consumption as the reason for the change of heart.
Meanwhile, the situation around Elon Musk has normalized again. He no longer has such a big influence on the price of cryptocurrencies – memecoins excluded. In addition, Musk has now made it clear that he is still in favor of cryptocurrencies. Tesla itself now holds 42,000 BTC and now accepts Dogecoin for the purchase of merchandise.
Nevertheless, the whole back and forth was certainly not good advertising for the cryptocurrency sector. It has once again shown how influenceable and small the market still is. At the same time, however, the market has also learned and can no longer be controlled by individual news as much as it was a few years ago.
Square Will Probably also Play a Superordinate Role for Crypto
While Musk’s polarizing statements repeatedly cause discussions that often cost nothing but valuable time, the situation is different with Jack Dorsey. As a clear Bitcoin advocate, he advocated, for example, the implementation of the tip function at Twitter via Bitcoin. For a long time he was also CEO of Tesla and the payment service provider Square – a direct competitor of PayPal. He is no longer acting as Twitter CEO. He now wants to concentrate on Square and is intensifying the work in crypto enormously. More than one article can probably also be written about Square’s role in the cryptocurrency space. It is important that we keep an eye on Square and Dorsey in any case. There should be a lot coming our way in the future.
Worth reading: Jack Dorsey and Co. found defense fund for Bitcoin developers
Conclusion: Walmart Will Drive Crypto Adoption Enormously
Walmart will most likely drive crypto adoption enormously. In the end, it doesn’t even have to be directly attributable to Walmart. Walmart has a different collar size than MicroStrategy, Square or Phunware, with Phunware and MicroStrategy primarily standing out for buying BTC. However, the pure buying and hodling of Bitcoin will not lead to mass adoption.
If Walmart really goes into detail in the cryptocurrency space, the equally large competition will have no choice but to join in. Nobody wants to miss the “second Internet”. As a result, the crypto industry will experience what is probably the greatest development of all time in a few years. Even if 99 percent of the current cryptocurrencies should fail and become worthless.
