A review of various writings on this concept revealed activity around the world and confirms this concept is not at all unreasonable. This article will give a summary of the review and highlight the actions that are being taken by Multinational Firms to position themselves to create and transact business in their own cryptocurrencies.
Noted by cryptocurrency expert, Gavin Brown, the co-founder, and director at venture capital firm, Blockchain Capital Limited, in an era where companies such as McDonald’s have a higher credit rating than countries such as Ireland, the notion that multinational firms may issue their own currencies and request that their customers purchase with them is “not that outlandish.” The question that remains is: “Will people trust that coin?” “they will trust it if they trust your brand and if they trust your product,” Brown told CNBC’s, Martin Soong.
To illustrate his point, Brown used the example of Starbucks prepaid cards. “They’ve got, you know, over a billion dollars of assets worth on their balance sheet of people who prepaid coffee on their charge cards in advance and that’s because they trust the brand, they like the product and they’re confident it will be there,”
“Facebook coin is … probably the next big one that’s coming,” Brown added.
The social media giant is reportedly developing a cryptocurrency for global payments that will be tied to the value of traditional currencies and available through its WhatsApp messaging app, according to Bloomberg and The New York Times. J.P. Morgan’s cryptocurrency – the “JPM Coin” which was launched earlier in 2019 was a “really intelligent play.”
“As that continues to be successful … we would see the strength of that particular currency rise and therefore, it would obviously help J.P. Morgan as the issuer of that currency as well,” Brown Noted.
Carlos Terenzi, International Relations, and Cryptocurrencies noted, Mr. Putin Proposed a multinational cryptocurrency that would bring closer the BRICS and the EEU countries. With Vitalik Butrein’s advice, experts from several countries are analyzing the possibility to create this cryptocurrency. United States, India, Israel, Armenia, and other countries are behind the group of developers studying this idea.
After the global financial crisis of 2007/2008, these countries suffered from it and now, they are recovering to the pre-crisis levels. With these cryptocurrencies and other initiatives, these states will be able to improve their technology infrastructure, increase their growth rates and be economically prosperous. Several cryptocurrencies are spreading all over the world. Institutions and enterprises are using these currencies to make international transactions, pay employees and suppliers. It is not yet clear how a multinational cryptocurrency will work in this market. But the proposition has already been made.