After sweeping the market with its free plans and super cheap tariffs, Reliance Jio now plans to venture into the fintech market by creating its own cryptocurrency, JioCoin.
According to a Livemint report, Mukesh Ambani's elder son, Akash Ambani will be leading the JioCoin project which plans to build a 50-member team to work on blockchain technology, that could also be used in developing applications like smart contracts and supply chain management logistics.
“The company plans to hire 50 young professionals with an average age of 25 years for Akash Ambani to lead. There are multiple applications of blockchain (for the company). The team would work on various blockchain products,” Livemint quoted a source as saying.
Blockchain is a technology that decentralises information without it getting copied. The information on blockchain is held through a shared database that can be accessed in real time. The data is not stored physically, but is stored on cloud.
Cryptocurrency is clearly the most popular application of this technology and reliance has decided on exploiting the same by creating their version JioCoin.
“One (application) is cryptocurrency. We can deploy smart contracts. It can be used in supply chain management logistics. Loyalty points could altogether be based on JioCoin,” source familiar with the Livemint said, adding that all of this was “in proposal stage.”
Reliance Jio also aspires to get into Internet of Things (IoT). Blockchain technology would come in handy there.Livemint source
The Internet of Things (IoT) is the phenomenon of devices being linked to electronics, software, sensors and network connectivity in order to be able to connect with each other and share data.
“Experts have been of the view that blockchain technology can potentially address the security risks to IoT because it provides a shield against data tampering by labelling each block of data,” Livemint said.
The government has cautioned against cryptocurrencies saying that they are not backed by assets and risks like money laundering. Finance Minister Arun Jaitley also said in the Rajya Sabha that the government is still monitoring the issue.
Jaitley had said that a committee under the chairmanship of secretary, department of economic affairs, is looking over all issues related to cryptocurrencies to propose specific actions to be taken adding that the government does not consider cryptocurrencies legal tender.
(With inputs from LiveMint)
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