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Home | Blog | Another Medium of Exchange?

Another Medium of Exchange?

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04/23/2014

From Jeff Deist:

An important but overlooked story is Walmart's recent announcement that it will offer cheap store-to-store money transfers.  Given the ubiquity of Walmart stores (which are large and strategically located), this development represents a real threat to the existing wire-transfer industry. But what if Walmart reduced or eliminated the transfer fee, provided the transmitted funds could be spent only at Walmart?   Why not create some kind of Walmart scrip?

This is nothing more than an extension of retail store gift cards, or existing scrip programs such as Disney Dollars. But since virtually everything one needs to live (other than luxury type goods) can be purchased in Walmart stores, its scrip might begin to circulate among the public (as casino chips do to a limited extent in Las Vegas).  And while Disney Dollars might seem silly, they actually appreciate in value, unlike Federal Reserve Notes!

Hunter Lewis is author of eleven books, including Economics in Three Lessons & One Hundred Economic Laws, Where Keynes Went Wrong, and Crony Capitalism in America 2008-2012, and has contributed to the New York Times, the Washington Post, the Times of London, The Atlantic and many other magazines and web sites including Mises.org and LewRockwell.com. Lewis is also co-founder of Against Crony Capitalism.org as well as co-founder and former CEO of Cambridge Associates, a global investment firm. He has served on boards and committees of fifteen not-for-profit organizations, including environmental, teaching, research, and cultural organizations, as well as the World Bank.

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