BMW partners with Coinweb to develop blockchain-based vehicle financing automation and loyalty program in Thailand
BMW, the luxury car manufacturer, has partnered with Coinweb, a decentralized blockchain layer 2-based company, to introduce blockchain-based tools to its business. The company will develop blockchain-based automation for vehicle financing processes, and also a reward program for customers of the car company adapted to compliance processes in Thailand.
BMW introduces Blockchain in its business
More companies are introducing blockchain processes as part of their operations due to the apparent reliability of the technology and how it can help save costs. On December 29, BMW, the German automaker, announced a partnership with Coinweb, a layer 2 (L2) blockchain interoperability protocol, to introduce blockchain-based processes to its business.
This alliance considers two different tasks. The first includes the development of a smart contract platform with the aim of streamlining various processes that must be completed for the financing of BMW-branded vehicles. According to a press release, this will include the implementation of a “fully integrated Anti Money Laundering (AML) & Know Your Customer (KYC) tool” adapted to Thailand’s local laws.
The second task is to create a blockchain-based loyalty program to reward customers of the brand with products and services, assigning a rank to each customer that is directly related to their reward accumulation.
Coinweb stated that it will use Binance’s Bnb Chain as the anchor chain for these transactions due to its performance to cost ratio. However, the transactions can be broadcast to other blockchains if necessary.
Advantages of decentralized Ledger technology
Bjørn Antonsson, CEO of BMW Leasing in Thailand, explained the benefits of moving parts of the processes to decentralized technology platforms. He stated:
We anticipate that this shift from manual paperwork to immutable records on the blockchain will greatly contribute to infallible efficiency and transparency.
BMW’s deal comes at a time when blockchain-based technology is being affected by the downturn in the cryptocurrency market, due in part to the demise of FTX, one of the largest crypto exchanges in the world. As Nobel Laureate Paul Krugman stated on December 1, some significant non-crypto blockchain-based projects such as Tradelens, a Maersk-backed global trading platform, and the blockchain-based engine developed for the Australian Stock Exchange, have recently been cancelled.
Nevertheless, Coinweb is positive about the result that this alliance can bring to the perception of how useful blockchain technology can be. Coinweb CEO Toby Gilbert stated:
We hope that when this project is fully launched, it can be used as a benchmark to prove that traditional enterprises can fully utilize blockchain technology and benefit greatly from it, without deviating from their core values and missions.
What do you think of BMW’s proposed implementation of blockchain technology? Tell us in the comments section below.
Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.
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