Cryptocurrency Development

Part
01
of three
Part
01

Cryptocurrency Development - Part 1

Facebook plans to launch its Libra cryptocurrency in 2020, and Bank MUFG is set to launch its MUFG coin later in 2019. JP Morgan, Arias Intel Corp. and AirAsia have not disclosed when they are launching their cryptocurrencies.

BANK MUFG

  • The MUFG Coin was created by Mitsubishi UFJ Financial Group, and it is going to be pegged with the Japanese yen, thereby making it a centralized currency.
  • To use the currency, customers will have to download an app which will automatically convert their bank deposits into the coin.
  • Users of the MUFG Coin will also be able to make payments at restaurants, convenience stores and also transfer to the currency to other user's accounts.
  • Bank MUFG will become the first bank in Japan to issue currency using blockchain technology.
  • The MUFG coin is set to be launched later in 2019, although the date has not been specifically stated as the company is still testing the currency.

JP MORGAN

  • In 2019, JP Morgan announced to launch its cryptocurrency called JPM Coin.
  • The company plans to use the cryptocurrency to give bankers and corporate clients a means of making payments to each other in real-time to replace wire transfers which can take up to days to complete.
  • The JPM Coin will be tied to the US dollar to make it financially stable compared to other cryptocurrencies.
  • JP Morgan plans to first release the coin in small quantities before rolling it out more widely.
  • The JPM Coin will be centralized, as its value will be based on bank reserves.
  • The company has not disclosed when it is launching the cryptocurrency as it is still testing the technology.

ARIAS INTEL CORP.

  • In 2018, Arias announced the development of its cryptocurrency called iNEO coins.
  • The iNEO coins will be used to purchase and sell products or services from others within the same ecosystem.
  • The iNEO will be integrated into the company's mobile games and apps.
  • The company plans to use the blockchain technology to solve its solve security and payment issues.
  • The company plans to make the iNEO coin decentralized.
  • Arias initially planned to launch the cryptocurrency in 2018 but so far, the iNEO coin has not been launched yet.

AIR ASIA

  • The CEO of Air Asia, Tony Fernandes announced that the company plans to launch its cryptocurrency called BigCoin as a plan to explore into new markets.
  • Air Asia plans to convert its frequent-flyer rewards programs into a blockchain-based cryptocurrency platform.
  • The BigCoin cryptocurrency will enable customers to purchase seats, in-flight meals and use other services.
  • The company plans to make its BigCoin decentralized and is already looking into the applications and opportunities of the cryptocurrency.
  • AirAsia is set to become the first airline to own a cryptocurrency if it completes the project.
  • AirAsia has not clearly stated when it plans on launching the cryptocurrency but the token is expected to be available through a crowd-sale.

FACEBOOK

  • In 2019, Facebook announced it was in the development of a cryptocurrency called Libra.
  • The Libra coin is expected to be used as a means of payment for online and offline services and not designed to be like bitcoin but instead a form of digital money backed by a reserve of assets.
  • The Libra cryptocurrency is mainly targeted to be used by individuals from developing countries without access to traditional banks, thus creating the first truly mainstream cryptocurrency.
  • Facebook formed the Libra Association along with 27 other partners which comprise venture firms, nonprofits, crypto firms, telecoms and technology providers to oversee the development of the cryptocurrency.
  • Although Facebook claims the Libra cryptocurrency will be decentralized, there's still controversy over the state of the coin, as various sources and stakeholders in the industry, including the co-founder of ethereum, claim that the currency is centralized and not decentralized as stated by Facebook.
  • Libra cryptocurrency is set to launch in 2020.
Part
02
of three
Part
02

Cryptocurrency Development - Part 2

Tencent does not plan to develop a cryptocurrency, Amazon has stated that they don't plan to develop one for at least several years, and Google has not stated their intentions to develop a cryptocurrency. Rakuten is still in the development phase of its cryptocurrency and Walmart recently filed for a cryptocurrency patent.

RAKUTEN

  • In 2018, Rakuten announced it is developing its cryptocurrency called Rakuten Coin.
  • Rakuten plans to use its cryptocurrency to create additional avenues for increasing transactions from international customers as well as to tap into more customers through its loyalty reward program.
  • The Rakuten Coin is inline with the company's vision of creating a borderless currency.
  • Customers will be able to carry out transactions likes online shopping, banking, payment using the Rakuten coin.
  • The company hasn't disclosed a date for the launch of the Rakuten coin.
  • Rakuten is among the companies taking advantage of the crypto space and creating their decentralized financial services and the company recently launched its cryptocurrency exchange platform.

AMAZON

  • According to Amazon's Vice President, Patrick Gauthier, Amazon is not currently planning on launching a cryptocurrency and the company will only consider developing something similar to Facebook's Libra in several years times.
  • The company cites the claim of developing its cryptocurrency as speculations.

TENCENT

  • According to a statement by the CEO of Tencent in 2018, the company does not plan to venture into cryptocurrency.
  • In a recent interview in June 2019, after Facebook announced its Libra cryptocurrency, Tencent reinstalled its position of not having plans to develop a cryptocurrency.
  • The company already owns a virtual currency called QQ Coin but it is not a cryptocurrency.

GOOGLE

  • Google has not announced its intentions yet to develop its cryptocurrency but the company has been making moves in the crypto industry.
  • Google has been putting search algorithms in place to make information from large blockchains publicly available through its BigQuery data analytics platform
  • According to predictions by Tyler and Cameron Winklevoss in a CNBC interview in 2019, they stated that they expect Google to soon follow the footsteps of Facebook in announcing a cryptocurrency.

WALMART

  • Walmart applied for a patent of its cryptocurrency in 2019.
  • The proposed Walmart cryptocurrency has been dubbed Walmart Coin, although, the company has neither named nor began developing the currency yet.
  • The company plans to use the cryptocurrency to store users purchasing histories and then will apply related savings to their future purchases.
  • The digital coin will be tied to a traditional fiat currency, thereby, making it a centralized coin.
  • According to a representative of Walmart, the company doesn't have plans for the cryptocurrency patent it filed and no further information on the development stage and launch date.


Part
03
of three
Part
03

Cryptocurrency Development - Part 3

Goldman Sachs, the Swiss National Bank (SNB), the gaming industry, and Yahoo! are examples of companies and industries that experts expect to enter the cryptocurrency sector.

GOLDMAN SACHS

  • Goldman Sachs has expressed interest in introducing a cryptocurrency trading desk.
  • Blockchain venture capitalist Spencer Bogart said that banks like Goldman Sachs are very aware companies like Coinbase and Binance could pose a threat to the big banks if they do not make a move to enter the cryptocurrency sector.

SWISS NATIONAL BANK

  • Avenir Suisse, an influential Swiss think tank, has published a report encouraging the SNB to adopt a blockchain based model. As of May 2019, SNB leadership was reportedly meeting to consider entering the cryptocurrency sector.
  • Marianne Wildi, head of Hypothekarbank Lenzburg, said that the bank should introduce a digital franc in order to encourage innovation and a stable digital currency. Dirk Niepelt, an economics professor at the University of Bern, said that he expected the process to take a while before the SNB actually entered the cryptocurrency sector.

GAMING INDUSTRY

  • The gaming industry has shown clear signs that it will enter the cryptocurrency sector with the emergence of projects like The Huntercoin project, which is a gaming environment in which players earn cryptocurrency, and Unikoin Gold, which is a blockchain-based eSports betting environment.
  • Jehan Chu, co-founder of the Social Alpha Foundation and Kenetic Capital, says that online gaming will progress towards general acceptance of cryptocurrency as a method of payments, as demonstrated by the entrance of Korean game company Nexon into the cryptocurrency sector.

YAHOO!

  • Yahoo! announced in March that it would acquire a 40% stake in Taotao, a cryptocurrency exchange set to open this year. This step signals a major step by Yahoo! towards entering the cryptocurrency sector.
  • Maurizio Raffone, founder and CEO of Finetiq Limited, says that Taotao has to ensure that it maintains high margins in order to survive the increasingly strict regulation that threatens its profitability.

RELATED EXPERT COMMENTARY

  • Antony Pomp, co-founder of Morgan Creek Digital, said that no large company in the world will be able to resist entering the cryptocurrency sector.
  • Paul Richard Brody, principal and global blockchain leader at Ernst & Young, said that both general business acceptance of blockchain and the public's acceptance of blockchain increased significantly in 2018. However, he said that business adoption of cryptocurrency has remained static.
  • Luka Horvat, Head of the Developer Vertical at Toptal, said that finance and supply chains are the two sectors in which businesses express the most interest in applying blockchain technology.
  • Rex Wong, CEO of AIVON, said that big tech companies are growing their blockchain divisions to help their clients apply blockchain technology in their supply chains and operations.

RESEARCH STRATEGY

To determine what industries and companies experts predict will enter the cryptocurrency sector, your research team began by reviewing cryptocurrency industry publications like Coin Telegraph, CryptoNewz, and Coin Desk, and financial publications like Forbes and CBS Insights. From this preliminary overview, we gathered information on several businesses predicted to enter the cryptocurrency sector and several experts who were making predictions about the industry's future. Next, we narrowed down the information we compiled by applying the parameters of the research criteria; we looked for businesses that were only beginning to enter the cryptocurrency sector and business that experts had discussed in their predictions. Finally, we conducted a second round of research into the businesses and industries that fit those parameters, ending up with the information presented above.

Sources
Sources

From Part 01
From Part 02