BMW Partners with Coinweb to Develop Blockchain Technology

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Key takeaways:

  • BMW has teamed with Coinweb to integrate blockchain-based solutions.
  • In two stages, BMW will adopt decentralized technology to eliminate burdensome paperwork from its daily operations and build a customer loyalty program.

BMW, a premium carmaker, has teamed with Coinweb, a decentralized layer two blockchain startup, to integrate blockchain-based solutions into its business processes. BMW intends to use blockchain technology in regular business processes and develop a blockchain-based loyalty program for Thai consumers.

The well-known manufacturer has selected Coinweb, a blockchain technology supplier, to supply its decentralized architecture and BNB Chain for transaction settlement.

In two stages, BMW will integrate blockchain technology into its operations. First, the decentralized technology will be integrated into BMW’s routine operations in the project’s initial phase to replace time-consuming manual processes and speed up the company’s car finance services.

In the project’s second stage, Coinweb would create a specific Web3 application for BMW’s customer loyalty program.

The program will reward BMW Group customers via a blockchain-based rewards system. The loyalty points determine a consumer’s position and tier within the ecosystem they have accrued via various actions.

Owners will eventually be able to use their rewards to purchase goods and services from both BMW and a connected environment. The native to Binance BNB chain will be used to settle transactions.

BMW Leasing’s CEO for Thailand, Bjorn Antonsson, outlined the advantages of moving some of the company’s operations to decentralized digital platforms. He declared:

“We foresee this shift of manual paperwork towards immutable records on the blockchain to immensely contribute to infallible efficiency and transparency.”

BMW’s collaboration comes at a time when the current bear market is hammering blockchain-based technology in cryptocurrencies, partly caused by the collapse of FTX.

Despite this, Coinweb is optimistic about the effect that this collaboration may have on how people see the potential value of blockchain technology. Coinweb’s CEO, Toby Gilbert, said:

“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.”

BMW Thailand‘s leasing manager, Bjorn Antonsson, stated that the company had been actively following the development of decentralized technology over the years and its numerous use cases.

Antonsson thought that incorporating blockchain technology into their everyday tasks would eliminate the manual paperwork and improve the effectiveness and transparency of the business.

Automakers have long been interested in decentralized technology, and BMW has been working with the technology since 2018. BMW was the first company to use blockchain technology to track its cobalt supply and guarantee that its goods were acquired ethically.

In addition, Mercedes has aggressively employed nonfungible tokens and cryptocurrencies as marketing tools, joining BMW.

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