AirAsia to Fly Higher with Own Cryptocurrency, ICO

Tony Fernandes, head of budget carrier AirAsia, is confident his company can take on a new challenge by becoming the first airline in the world to launch its own digital currency and an initial coin offering (ICO). Despite the murky rules in the digital currency space, AirAsia plans to take this step and use its cryptocurrency to reward frequent flyers, Fernandes told TechCrunch in an interview on the sidelines of the Singapore-hosted Money20/20 conference.

"We have a product that can be a currency in Big Loyalty, [and] we're building a payment platform so the two can marry quite nicely. We have an ecosystem that enables you to use that currency; there's no point having a currency that can't be used," Fernandes said.

Fernandes, one of Malaysia’s richest people with an estimated fortune of $745 million, would not disclose how much AirAsia plans to raise through the ICO. However, he declared a firm belief in cashless transactions, saying that cryptocurrencies will play an important role in Southeast Asia’s economy: the region is home to millions of overseas workers who send billions of dollars across borders.

Fernandes is no stranger to dealing with stringent rules. Indeed, the airline industry is one of the world’s most regulated sectors, but as he noted, his company has strong connections with the government and could even help bridge the gap between regulators and industry players.

“We know how to deal with regulators and regulations,” Fernandes told TechCrunch.

Forward-looking
AirAsia’s entry into the digital currency space will pave the way for a transition into financial services. Fernandes claims he can innovate and keep up with fast-paced changes.

In February, Singapore Airlines said it planned to integrate blockchain technology into the loyalty program for its frequent flyers, providing them with digital wallets that can be used to unlock value from accumulated miles.

Singapore Airlines CEO Goh Choon Phong said at the time:

“This groundbreaking development in which we will be using blockchain technology to ‘digitalise’ KrisFlyer miles is a demonstration of the investment we are making to significantly enhance the digital side of our business for the benefit of our customers.”

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