BMW, a German car manufacturer recently announced that it has joined hands with Coinweb, a layer 2(L2) blockchain interoperability protocol which will help the car manufacturer to introduce blockchain-based solutions to its operations.
According to a press release published by Bloomberg, the two companies came together to develop and introduce Blockchain into BMW’s workflow in Thailand.
The blockchain company wrote on Tweet that “Coinweb brings blockchain technology to BMW – Introducing their mass user base in Thailand to the cross-chain infrastructure.”
BMW will focus on the development of a smart contract platform with the objective to fast-forward the process that needs to be completed for the financing of BMW’s vehicles.
According to the press release, this would encompass the implementation of a “fully integrated Anti Money Laundering(AML)Know Your Customer(KYC) tool” adapted to Thailand’s local laws.
The second motive is to develop a blockchain based loyalty program to reward customers of BMW with products and services assigning a rank to each customer directly related to their rewards accumulation.
Coinweb noted that it will use Bnb Chain as the anchor chain for these transactions due to its performance-to-cost ratio. It is also important to note that the transaction can be made available on other blockchain if needed.
BMW’s head of Leasing in Thailand, Bjorn Antonsson explained the importance of the company’s plan to shift its processes to a decentralized tech platform “ We foresee this shift of manual paperwork towards immutable records on the blockchain to immensely contribute to infallible efficiency and transparency.”
This ongoing year has troubled the crypto sector the most because some unprecedented event like FTX and Terra collapse.
Toby Gilbert, the Chief Executive Office of Coinweb declared that “ We hope that once this project is fully launched, it can be used as a benchmark to prove that traditional businesses can fully leverage blockchain technology and benefit hugely from it, without deviating from their core values and mission.”
Paul Krugman, a 2008 Nobel Prize winner in Economics, in an interview, warned about an eternal cryptocurrency winter for blockchain-based currencies like Bitcoin and other cryptocurrency networks.
Krugman criticizes the real utility of this technology when there are other centralized alternatives that currently function quite well. Paul expressed his skepticism questioning cryptocurrency: “What’s the point?,” ”Why go to the trouble and expense of maintaining a ledger in many places, and basically carrying that ledger around every time a transaction takes place?.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/12/31/bmw-and-coinweb-partnership-seeking-to-smooth-vehicle-financing-automation/