PriceWaterCoopers Buys Stake in VeChain to Dig Further Into Blockchain
After banking services and supply management, it is the turn of the accounting firm to dig into the blockchain technology use cases. PriceWaterCoopers has disclosed its first official announcement about its investment in the industry. The accounting firm’s unit in Hong Kong, as well as, Singapore has purchased a small stake in VeChain, which is a supply chain startup from China and based on blockchain technology. This is also one more instance of how the new age technology is expanding its use cases in different sectors.
PwC thinks that its investments would offer VeChain’s trust-based services with the help of its platform. That would mean that it needs the use of tokens of VeChain to not only access but also perform transactions, financemagnates.com reported. Significantly, the platform has been adopted by a number of popular firms already as part of their production system in different industries. VeChain is a unit of China-based BitSE, blockchain technology firm, which was introduced in November 2016. The objective was not only to create but manage and shared data in respect of products in the supply chain.
The accounting firm’s investments would also allow the acceleration of VeChain platform deployment in South East Asia and Hong Kong besides other startup tactical advice firms with blockchain technology. PwC is one of the Big Four accounting and tax companies around the world. Incidentally, it was the second professional services firm to provide settling of invoices in bitcoin to its clients. However, it is not the only company to adopt bitcoins payment as Ernst & Young has already allowed this facility to its clients in 2017.
As the two of the Big Four accounting firms introduced the crypto payment system, other professional services are also showing interest in the digital currency. One of the primary reasons for such a change in thinking is that bitcoin and other popular virtual currencies have started getting wider acceptance for means of payment. It is quite obvious that the accounting firm wants to cut down transaction costs for its advisory services.
The company could also plan a wider strategy to encourage the digital products development. As far as the accounting firm is concerned, the company is making its earnest efforts to advise its customers on crypto funds, digital currency exchanges, investments and fundraising exercises with the help of token sales or ICOs. The firm will also add on risks, advice on the new process, regulatory policy and guidelines for tax.
PwC Asia Pacific, and Greater China Chairman, Raymund Chao, commented, “We are glad to establish a deeper relationship with VeChain, which aims to build a trusted and distributed business ecosystem to help address long-standing challenges in supply chain management, food trust, and anti-counterfeiting areas. VeChain’s mission aligns with PwC’s purpose of solving important problems and building trust in society.”
The accounting firm’s move is significant and comes as a shot in the arm for the cryptocurrency industry. Though the digital currency segment faced a number of negative news in the first quarter, the second quarter appears to have started off well.