With an aim to develop applications such as smart contracts and supply chain management logistics, jioinfocomm, a leading telecom major that disrupted the country’s telecom sector last year with its highly discounted data usage rates that broke the norms of telecommunication industry drastically, is again set to land up in the arena with its new venture. This business giant is not leaving any stone unturned to leave its “fellow mates” wonderstruck.
Reliance Jio is contemplating over a plan to develop its own “crypto currency jio-coin”, Livemint reported. Weeks after Finance Minister Arun Jaitley informed the Parliament that crypto-currency was not a legal tender in India, Mukesh Ambani driven Reliance Jio is planning to launch its own virtual currency –Jiocoin. This report came out when Finance Ministry and the Reserve Bank of India clearly stated –the creation, trading or usage of virtual currencies as a medium of payment were not authorised by central bank of monetary authority. Finance Minister underlined that the virtual currencies including “BITCOIN” don’t have any intrinsic value and are not backed by any kind of assets. Till now we knew about virtual memory lying in our systems but this virtual currency concept has created a new controversy in the business world.
Last month, “the apex bank of India-RBI” issued its third warning, reminding the investors of its earlier concerns. It even said that no such licence or authorisation to any entities who support and are keen to work in such schemes with “BITCOIN” or any virtual currency is given. However Reliance Jio seems to be ignorant of the above warnings and is set to launch its own virtual currency. The project will be head by Mukesh Ambani’s eldest son Akash Ambani who will be leading a 50-member team of young professionals with an average age of 25 years to work on block-chain technology. Now, this term “block chain” is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block contains a hash pointer as a link to previous block. They are innately resistant to mutation of data.
Reliance jio also aspires to get into the IOT segment where this block-chain technology would be resourceful. IOT is another facet of modern technology which is witnessing growth and industry-wide interest. Block chain is well suited for an IOT ecosystem to flourish, taking advantage of this factor RELIANCE-JIO is all set to work upon its project. 2017 has seen crypto-currencies platforms such as “Bitcoin & Ethereum” gain prominence due to the steep rise in the value of virtual currencies. The RBI says that virtual currencies, being in digital form are stored in digital-electronic media that are called “electronic wallets”. Therefore, they are prone to losses arising out of hacking, loss of passwords, compromise of access credentials, malware attacks etc. Their use is largely for illicit and illegal activities and India has witnessed “black money” transactions and savings to a large extent during demonetisation.
Payments take place on a peer to peer basis without any authorised central agency which regulates such payments. There is no underlying or backing of any asset for virtual currency. As such, their value seems to be a matter of speculation. Huge volatility in the value of such currency –in this case Bitcoin-has been noticed in the recent past. Thus the users are prone to potential losses on account of such volatility in value. This “crypto currency mania” is working like a termite engulfing the roots of business and trade world.
As far as Reliance Jio is concerned they have not shared any information on their plans to launch its own crypto currency, the team however will be working on different block chain projects. “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 block chain. The company or the team would work on these products”, a person familiar with the development said on a condition of anonymity as reported by Mint.
For Reliance Jio it seems that company was made to break the foundations, creating its own integrated environment wishing to become a “MONOPOLY” in the “GLOBAL ECHONOMY” (pun intended).