More and more companies are starting to rely on cryptocurrencies and the blockchain technology for various activities. This is usually the case for activities that involve their customers and clients, such as integrating cryptocurrency payments or using the blockchain to transfer data about their users. This includes Walmart, who has filed at least two blockchain-based patents in the past months, one focusing on improving their delivery system. Other companies like Kakao, Line, Microsoft and Kodak have implemented the “distributed ledger” technology into their operations. It is now Allianz’s turn to make the headlines. The German insurance company is looking to use cryptocurrency to transfer money between its worldwide offices.
There would be many advantages for Allianz in adopting the technology. One of them is that the company would be able to save a lot of time and money, by cutting down costs and avoiding exchange rates and fees. With current and existing methods for worldwide money transfers to other counterparts of the company, there are a lot of commissions and constant currency exchanges. In addition to cost, it also takes a lot of time as these money transfers are dependant on banks. The idea would be therefore to develop a token that would be transferable from one corner of the globe to another, for little to no fee. Moreover, the money would arrive in a matter of hours or less in any of the 100 countries that the insurer operates in. The token is still being developed but has reportedly been tested internally at the company. Allianz has used the services of a specialized startup called Adjoint to create a specific and dedicated blockchain for the token.
Even though it is still in the testing phase, this is very promising for the crypto space. If larger companies like Allianz start actively using digital currencies to solve their existing issues and to improve their way of carrying business, it could mean that other actors will follow. One of the brains behind this idea, Alan Cabello, innovation program manager at Allianz, has stated that this is not only applicable to the insurance company. According to him, most large companies have problems when they need to send money across the world.
Will other big companies and firms like Google, Facebook, and others who have offices everywhere in the world, integrate cryptocurrencies, coins or tokens, to manage their funds internally between different counterparts across countries?
TLDR: Allianz, one of the biggest insurance companies in the world is reportedly trying out a token that would be used to send money across the world between its different counterparts. This would save time, money and would be much more efficient than current methods.