Reliance Jio Infocomm Ltd plans to create its own cryptocurrency, with Mukesh Ambani’s elder son Akash Ambani leading and expected to head the JioCoin project under Reliance Jio. Reliance Jio plans to build a 50-member team of young professionals to work on blockchain technology.
Cryptocurrencies are digital or virtual currencies that use cryptography to secure and verify transactions. Its popularity has grown for the value of Bitcoin, in the past year. the most popular cryptocurrency – had surged to over $16,000 in December.
Livemint quotes a person familiar with the development saying, “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.”
“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,” the person cited above said, adding that all of this was “in proposal stage”.
The report quotes an unnamed source to mention that – “Reliance Jio also aspires to get into Internet of Things (IoT). Blockchain technology would come in handy there”. IoT is a network of devices such as smartphones, wearable devices, home appliances and vehicles, connected to the internet, which enables these objects to connect and exchange data.
This development becomes interesting as blockchains, the driving force behind cryptocurrencies such as Bitcoins (BTC), Litecoin (LTC), Ethereum (ETH), Ripple (XRP) etc. have found inroads into some of the most crucial operations inside India.
However, the Indian government and the Reserve Bank of India have warned users against virtual currencies. The government even compared them to Ponzi schemes and warned traders of the risks, including “permanent loss of money”. On 2nd January, finance minister Arun Jaitley told the Rajya Sabha that the government was still studying the issue.
“A committee under the chairmanship of secretary, department of economic affairs, is deliberating over all issues related to cryptocurrencies to propose specific actions to be taken,” Jaitley said, adding that the government does not consider cryptocurrencies to be legal tender.
Shockingly Bitcoins dropped by 12% in value to approx. $12,800 on Thursday its lowest since Christmas, as South Korea’s justice minister reiterated his proposal to ban local cryptocurrency exchanges, Bloomberg reported.
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