BMW works with Coinweb to develop a blockchain-based automation and loyalty program for vehicle financing in Thailand- Blockchain
BMW works with Coinweb to develop a blockchain-based automation and loyalty program for vehicle financing in Thailand- Blockchain
BMW, the manufacturer of luxury cars, has teamed up with Coinweb, a decentralized company based on blockchain layer 2, to introduce blockchain-based tools. The company will develop a blockchain-based automation for vehicle financing processes and a premium program for customers of the automotive company that is adapted to compliance processes in Thailand.
BMW introduces Blockchain into its company
More and more companies are introducing blockchain processes as part of their business, since the technology is allegedly reliable and it can help to save costs. On December 29, BMW, the German automobile manufacturer, A partnership with Coinweb, one Layer 2 (L2) Blockchain-Interoperability Protocol to introduce blockchain-based processes into his company.
This alliance provides for two different tasks. The first includes the development of a Smart Contracts platform with the aim of rationalizing various processes that have to be completed for the financing of BMW vehicles. According to a press release, this would include the implementation of a "fully integrated anti-money laundering (AML) & Know your Customer (KYC) tools" that is adapted to the local laws.
The second task is to create a blockchain-based loyalty program to reward customers of the brand with products and services, whereby each customer is assigned a rank that is directly related to its premium battery.
Coinweb stated that BNB will use Binance Chain due to its performance cost ratio as an anchor chain for these transactions. However, the transactions could be transmitted to other blockchains if necessary.
Advantages of decentralized LEDGER technology
Bjorn Antonsson, CEO of BMW Leasing in Thailand, explained the advantages of relocating part of his processes to decentralized technology platforms. He indicated:
We assume that this shift in manual paper stuff towards unchangeable records in the blockchain will contribute to infallible efficiency and transparency.
The deal of BMW comes at a time when blockchain-based technology is affected by the downward trend of the cryptocurrency market, which is partly due to FTX's collapse, one of the world's largest crypto bonds. As Nobel Prize winner Paul Krugman specified on December 1. Non-crypto blockchain-based projects such as one supported by Maersk Global Trading platform, and the blockchain-based motor Australian stock exchange was recently canceled.
Nevertheless, Coinweb is positive about the result that this alliance could bring for perception how useful blockchain technology can be. Toby Gilbert, CEO of Coinweb, explained:
We hope that this project, as soon as it has started completely, can be used as a benchmark to prove that traditional companies can fully use blockchain technology and benefit enormously without deviating from its basic values and mission.
What do you think of the implementation of blockchain technology proposed by BMW? Tell us in the comment area below.
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