BMW, the German automotive giant, has teamed up with Coinweb, a layer 2 blockchain-based company, to bring blockchain-based tools to its operations. The Company plans to construct blockchain-related automation for vehicle financing and a loyalty program designed to meet Thai compliance requirements.
BMW Utilizing Blockchain in Operations
More companies are taking advantage of blockchain technology for its dependability and potential cost savings. On December 29, BMW announced its partnership with Coinweb to incorporate blockchain-based processes into its operations. A layer 2 (L2) blockchain interoperability protocol was created for this purpose.
This collaboration involves two distinct tasks. The First, the development of a smart-contract platform to streamline the various processes necessary for financing BMW vehicles. This will include the implementation of a fully integrated anti-money laundering (AML) and Know Your Customer (KYC) tool, with Thai regulations in mind.
The Second task: Establishing a blockchain-based loyalty program to reward customers with products and services. Customers will be given ranks based on how many rewards they acquire.
Coinweb indicated that Binance’s BnB Chain will be the anchor chain in these transactions because of its performance-cost ratio. However, transactions could be migrated to another blockchain if necessary.
Benefits of Blockchain Technology
Bjorn Antonsson, BMW Leasing CEO in Thailand, discussed the benefits of moving certain processes onto decentralized technology platforms. He stated:
The blockchain will allow us to make our lives easier by providing us with immutable records that can be accessed on the blockchain.
BMW’s alliance with Coinweb comes as blockchain-based technology has been affected by the crashing crypto market caused in part by the collapse of FTX, the world’s largest cryptocurrency exchange. As Nobel laureate Paul Krugman stated on Dec. 1, some of the most important non-crypto blockchain-based projects such as Tradelens, the global trading platform backed by the CIA, and the blockchain-based engine being built for the Australian Stock Exchange, were cancelled.
Nevertheless, this collaboration with BMW will have a positive effect on the potential advantages of blockchain technology. Coinweb CEO Toby Gilbert noted:
We hope that once this project is launched, it can be used as a benchmark to show that traditional firms can take full advantage of blockchain technology and greatly benefit from it, without straying from their core values and mission.
What do you think of BMW’s plan to utilize blockchain technology? Please leave your thoughts in the comments below.
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