Rakuten, an eCommerce Giant based in Japan, has decided to introduce the Cryptocurrency on its own. The cryptocurrency – Rakuten Coin is based on the distributed ledger – Blockchain. The market cap of Rakuten is estimated at more than $12.5 billion.
Mr. Hiroshi Mikitani, the founder and Chief Executive Officer of Rakuten, has made the announcement cryptocurrency debut While speaking in Barcelona at the Mobile World Congress on February 27, 2018.
Mr. Mikitani said the new currency is a borderless currency and helps to differentiate the company online rivals such as Alibaba, Amazon, and eBay. The company will be able to frame new relations between merchants and retailers alike. The company is aiming to recreate a network of merchants and retailers through this new concept while maintaining the existing customers.
The company has introduced Rakuten Super Points loyalty program around 15 years back and it has been a super success. Rakuten has issued more than 1 trillion loyalty points that amount to $9.1 billion.
The customers gain loyalty points whenever they make purchases in the market. The loyalty points can be redeemed for additional discounts when making a purchase next time.
Rakuten is also planning to add more customers through introducing loyalty points based on blockchain technology. The company is capitalizing on the growing interest of customers in cryptocurrencies. However, Rakuten has not revealed details about the launch date of the service.
Rakuten, which is a rival to Amazon, has acquired intellectual property assets of BitNet, a Bitcoin payment processor, two years back. The company has established Rakuten Blockchain Lab to develop applications based on the blockchain technology for use in fintech and e-commerce.
The cryptocurrencies are used worldwide for payments worldwide irrespective of the border and transactions are completed faster than traditional systems. Since blockchain technology uses distributed database and stays on a number of computers in the network, it is more secure and the transactions are transparent.
The companies will benefit from reduced transaction costs and promote international transactions. As a result, more companies are investing in Blockchain technology and serve the customers.