3 Top Tips on Adopting Crypto-Tokens for Non-Financial Companies

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While you may have heard or read a lot lately about crypto-currency or blockchain and other new fintech advances, you may be wondering how your business could use this. Businesses outside the financial services industry, such as retailers, automakers and telecommunication firms, can benefit from financial technology (fintech) by embracing cryptocurrency the right way. Here are 3 top tips on adopting crypto-tokens for non-financial companies.


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1. Think of a Practical Purpose

Imagination is the only limit to what a digital token can do for your business. It can be a tool to incentivise your customers, replace traditional vouchers or be treated like points that can be gained or collected to earn membership of a certain club.

You should study how other companies are experimenting with crypto-tokens to take their business to the next level. An excellent case in point is Jaguar Land Rover. The auto manufacturer is planning to reward drivers willing to share their transport data by giving out IOTA tokens. Using a smart wallet, the crypto-tokens are redeemable against various goods or services, such as cups of coffee and parking space.

The project is being piloted by Jaguar Land Rover’s cutting-edge software engineering center in Ireland. The goal is to encourage drivers to participate in the sharing economy in preparation for a future where a treasure trove of vehicle-generated data about traffic conditions can be used to help autonomous vehicles navigate the roads more easily.

What works for one organisation may not work for another. Think about how you can use crypto-tokens to maximum effect to innovate your company quickly and achieve your business goals.

Come up with a digital token purpose that your customers can easily understand and appreciate - this will help to create a market for it immediately. When you come up with the right idea, the demand for your crypto asset will increase on its own.


Recommended reading: Ireland Proves Fertile Ground For Fintech Sector


2. Talk to a Fintech Company

Anyone with average coding skills can create a basic digital token with little difficulty since the majority of initial coin offerings (ICOs) follow the same standard. However, collaborating with the right fintech startup comes with several virtues.

Amongst the numerous benefits of finding a strategic tech partner, setting the parameters of your crypto-token flawlessly is critical to its success. After all, the characteristics of your cryptocurrency depending on how you envision it to be used and how you do not want it to be abused.

Working with a competent team is invaluable because such a project can have a steep learning curve.

3. Be Aware of the Legal Boundaries

Cryptocurrency is one of the fintech areas that is somewhat still in legal limbo. Even experts who live and breathe are still exploring the possibilities with crypto assets and ICOs. Naturally, the authorities can’t provide the necessary legislative coverage to regulate the use of digital tokens quickly.

Nevertheless, it is imperative to know the limits of what you can do with crypto-tokens. Consult your solicitor or legal advisors outside your organisation specialising in fintech regulation to determine whether your idea can be executed without breaking the law.

Cryptocurrency is shaping the future, and we can imagine how blockchain could change the world by 2030. Push the envelope of crypto-token utility to stay ahead of the curve before your closest rivals beat you to the punch.

 

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