Burger King launches crypto-currency in Russia

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Fast food chain Burger King announced a new loyalty program this month, to launch its own crypto-currency, named Whoppercoin, in Russia.

Hosted on the platform of Waves, a crypto-currency startup, Whoppercoin can be used to reward customers for their purchases and to buy burgers when enough have been accumulated.

Named after Burger King's Whopper Sandwich burger, Whoppercoin can be transferred and traded online, which means customers can send the "coins" to friends or sell them to other buyers.

A Whopper burger can be redeemed for 1,700 Whoppercoins. /AFP Photo

According to Waves, an app will be released by Burger King Russia in September to support the scheme.

According to the Moscow-based startup, one billion Whoppercoins have already been issued. Customers can receive one Whoppercoin for every rouble (about 0.02 US dollars) they spend, and a Whopper burger can be redeemed for 1,700 Whoppercoins.

According to Dr. Garrick Hileman, research fellow at the Cambridge Centre for Alternative Finance, the US fast food giant is the first major brand to launch its own crypto-cash.

"Traditional loyalty programs, such as airline miles, typically have a fairly limited range of exchange options," Hileman told BBC, claiming that using branded crypto-currencies as loyalty scheme could be "more compelling" than traditional ways.

"I don't imagine McDonald's will be quick to allow someone to pay for a Big Mac with their Whoppercoins," he added.

Hileman said to BBC that competitors of Burger King are more likely to take independent virtual-currency like bitcoin rather than Whoppercoin.

Crypto-currency in pyramid selling

Song Miqiu, a fraud suspect who fled China, is escorted from an aircraft upon his return. /China Daily Photo

Although seen as a beloved investment opportunity, crypto-currency could be abused as an instrument of crime.

A fugitive suspected of conning Chinese coin collectors out of 600 million yuan (about 88 million US dollars) has been brought back to China after being detained in Indonesia this June.

The case was revolved around a virtual-currency called "wuxingbi" or "five elements coin", which was created by the suspect, Song Miqiu.

According to a statement from China's Ministry of Public Security, Song Miqiu is accused of selling fake shares in his company and running a pyramid scheme, China Daily reported.

Song led a group in hawking wuxingbi since November 2012. Victims were brainwashed into thinking that the coins would rise sharply in value, the Ministry said.

Sixth Tone revealed an investment guideline made by Song this April, which encourages current investors to find more people to invest in the currency, for which they would receive rewards.

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Source(s): China Daily