Is the 'boom' of big companies issuing their own cryptocurrency coming?

Is the 'boom' of big companies issuing their own cryptocurrency coming?

A few days ago, Finance Magnates revealed that an exclusive source had confirmed to them that Facebook soon would be launching its own cryptocurrency, Facebook Coin (FBC).

The social media giant --which in recent weeks has been under the spotlight after it was revealed they sold private information of some of its users to the British political consulting firm Cambridge Analytica-- has not confirmed such information, but reportedly the coin would be launched on the Ethereum protocol.

And on Monday, popular budget airline AirAsia confirmed its plans to venture into the Fintech sector with the launch of a proprietary cryptocurrency, called BigCoin.

Tony Fernandes, AirAsia founder and chief executive, confirmed to Nikkei Asian Review the airline’s plan to expand into new markets alongside the launch of BigCoin. It's still unknown if AirAsia will develop its own Blockchain or intends to use an existing Blockchain platform.

The potential cryptocurrency issuing of these two giants of their respective sector pose a scenario that many believe is inevitable: eventually the world's largest companies will use Blockchain technology to process their payments.

However, it's a whole different game that established companies --which don't need to raise funds into their own new coin through an initial coin offering (ICO) to 'jump' into the market-- decide to launch their own cryptocurrency. That's why so far no American big brand company has issued its own digital coin. If it comes to reality, Facebook would be the first one, and if they are successful, most likely they will have followers.

According to many experts of the cryptoeconomic market, there is one brand that, should it enters the 'game', would change the world's scenario: Amazon.

The company is investing in Blockchain for their Amazon Web Services division, so they have the infrastructure set up for crypto.

Also, a recent LendEDU survey revealed that many people would embrace the idea of a cryptocurrency to be used as a means of payment at Of the 1,000 shoppers polled, 51.7 percent said yes to the idea.

"An Amazon cryptocurrency wouldn’t just change the face of the world’s largest online retailer. It would change the world," says Sam Town, a freelance Fintech journalist. "The era of (cryptocurrency) mass adoption would be upon us within minutes of (Amazon's owner) Jeff Bezos announcing either a proprietary AmazonCoin or a partnership with an existing platform."

But in the reality this is not something so simple, and it wouldn't happen overnight. Yes, everyone loves Blockchain, but not everyone loves crypto. The market has plummeted twice so far in 2018, and the capitalization of the combined crypto markets has dropped by 59% in the first quarter of the year.

"Once there is more regulatory clarity in the marketplace, we could see some Fortune 500 companies pursuing more tokenized solutions", says Mike Poutre, CEO of The Crypto Company, a Malibu-based IT solutions provider for the crypto assets market. "The focus won't be on raising capital --like traditional ICO's. It would be about taking advantage of the other benefits of tokenized solutions."

For those in the industry, there's a clear notion that a shake-out is taking place, and everyting is becoming more professional. It's just a matter of time before cryptocurrencies have a greater impact --and more practical use, not only speculative-- in the world economy.


By Alejandro Cortés

Sources: Finance Magnates, CCN, Forbes

  • Alejandro Cortés

    Alejandro Cortés

    Egresado de la Escuela Mexicana de Periodismo Carlos Septién García. Ha trabajado para varios periódicos en México y los Estados Unidos desde 2002.

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