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2024’s loyalty overhaul: Blockchain’s promise for brands

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Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

To succeed in web3, brands need to understand that the future of loyalty isn’t about locking customers into closed systems. It’s about setting them free—free to own their data, control their rewards, and engage with brands on their own terms. Loyalty programs have never been more popular, but they’ve also never felt so outdated. As the inflation crisis eases, customers continue to trade personal details for deals—gaining access to ‘normal’ prices while non-members pay a premium.

This tactic, although counterintuitive, is working. According to Antavo’s 2023 Global Customer Loyalty Report, 67.7% of businesses have made plans to boost investment into loyalty programs to retain customers in the face of inflation. And 79% of American consumers have taken the bait, spending more with brands that offer loyalty perks, reports Statista.

Yet, this scramble to boost loyalty has revealed that traditional loyalty programs are losing relevance. But there is a solution on the horizon. Blockchain technology has emerged as a potentially radical alternative to the tried and no longer true loyalty programs that many brands still hold onto. 

Walled gardens and limited use cases

Anecdotally, traditional loyalty programs have operated within walled gardens where customer data is siloed, and rewards are limited to specific use cases. These models have long depended on third-party cookies and opaque data practices to thrive.

However, as privacy regulations tighten and cookies phase-out, these models are rapidly losing their viability. The result? Loyalty inefficiency through unused points, shallow engagement, and fragmented data. Additionally, thanks to data breaches becoming garden variety, consumers are increasingly erring on the side of caution over how their data is collected and used, with many opting out of loyalty programs altogether.

In the digital era, traditional loyalty frameworks have begun to crumble. Nowadays, customers don’t have to settle for being trapped in closed systems, and brands can no longer take customer buy-in for granted. Instead, brands need to make a compelling case for why sharing personal information is worth a customer’s engagement.

This is where the blockchain comes into play. Because if traditional loyalty programs are like store gift cards that can only be used in one place, blockchain-based loyalty is like cash: fungible and usable almost anywhere without revealing a customer’s identity.

Within this framework, smart contracts ensure transparency, while user-owned wallets put control back in the hands of consumers, redefining the value exchange between brands and their patrons.

Revamping loyalty one block at a time

Imagine a loyalty program that runs seamlessly in the background, powered by blockchain but invisible to the user. Shoppers earn tokens for purchases and interactions, redeemable for discounts, experiences, or even tradable with others. Unlike traditional points, these tokens belong entirely to the consumer and are securely stored in a digital wallet.

Dynamic NFTs offer a glimpse into the future of onchain loyalty. These customizable, tokenized assets evolve with user engagement—think NFT badges that unlock exclusive products or perks, like Lululemon rewards earning you a free month of personal training at your gym. These dynamic tokens can be tailored to a customer’s experience. By leveraging AI, brands can add security measures like verifiable credentials into the mix to help create personalized experiences.

Now with verifiable credentials in this framework, users can share only the information they choose to, while brands can use modular tools onchain to build custom loyalty experiences tailored to individual preferences. The result is a loyalty program that feels less intrusive, more authentic, and more engaging than traditional means.

Although we’re still incredibly early to these potential benefits, the idea of tech abstraction has been a major driving force behind this paradigm. Some have even likened this evolution to the rise of cloud computing (like Amazon Web Services), where consumers don’t see the tech they’re interacting with, just the optimal user experience that it creates.

Opting-in to the future of loyalty

As cookies disappear and privacy concerns about data grow, an increasing number of brands are now asking themselves a critical question: “How can we make loyalty programs so compelling that users actively choose to participate?”

The answer lies in creating experiences that are genuinely valuable to customers. Gone are the days of buy 10 get 1 free. These traditional incentives (which really don’t feel like incentives anymore) can now be replaced by onchain rewards like collectibles, leaderboards, or token-gated experiences.

Brands must still tread carefully when entering this new paradigm. Shallow attempts to bring products on-chain have failed spectacularly on web3. After years of refinement, the general consensus is that simply tokenizing existing loyalty programs without rethinking value propositions is a recipe for experiences to fall flat.

As blockchain technology matures, brands embracing this paradigm will thrive, unlocking transformative rewards not only for their customers but for themselves along the way.

Neil Mullins

Neil Mullins is the CEO of Mojito, the web3 consumer engagement platform for brands. Neil has over 15 years of experience developing consumer-focused products and has worked with a wide range of companies and products, from art startups to healthcare and high fashion. He was most recently part of the leadership team at Gin Lane and Pattern Brands, which has helped birth over 50 startups, such as Sweetgreen, Hims, Harrys, and Sunday Goods, with a cumulative value of over $10 billion.



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Toulouse starts to accept crypto for public transport

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In Toulouse, France, residents can pay for their metro, tram, cable car, and bus tickets with Bitcoin and other cryptocurrencies.

In fact, starting on March 17, Toulouse became the first European city where crypto can legally be spent on public transport.

The move comes as France actively seeks to deploy various crypto-friendly services. It is reported that Cannes is also working on a payment system that will accept crypto from residents.

Tisséo, a Toulouse public transport operator, launched its solution first. The tickets can be bought via an Android-based mobile app for Bitcoin or one of the 70 altcoins. The crypto is instantly converted to euros. Binance Pay is among the supported payment options.

According to the deputy mayor of Toulouse, Sacha Briand, the initiative is experimental as the company wants to check how widespread the use of crypto can become in the long run. The press release emphasizes that the Toulouse administration is interested in the long-term prospects of cryptocurrency integration.

It’s worth noting that Paris-based Lyzi developed the crypto payment infrastructure for Tisséo. This white-label fintech company actively helps other businesses, including pharmacies, coworking spaces, and restaurants, accept crypto payments.

Lyzi also facilitates crypto payments for Printemps fashion stores across France.

Some of the Bitcoin maxis have already expressed discontent over the fact that the service involves an intermediary of Binance, as they disapprove of the use of any middlemen or altcoins.

Advocates of the move by Tisséo argue that having Binance involved was important to ensure the speedy execution of transactions. 

A more serious hurdle is the necessity to declare crypto transactions via tax form 3916-bis. Crypto transactions incur a 30% capital gains tax. Time will tell how easy it is. Regulators will likely have to adjust the rules to make crypto payments easier. The stats indicating how many people use the new payment avenue are unavailable as of press time.

Crypto in France

France is one of the countries that adopted general crypto regulations in 2020, making cryptocurrency storage and transactions legal and inspectable as France complies with the AML rules.

The press release dedicated to the crypto implementation in Toulouse mentions that cryptocurrency is becoming more popular among the French. The 2024 report by Gemini indicates that around 18% of French citizens hold crypto. Tisséo’s adoption of crypto payments for city transit was made in anticipation of the further growth in the number of crypto owners.

While the new initiative can attract more people’s interest in owning crypto, it may also create a robust infrastructure where people can use crypto for daily purchases once the share of crypto holders becomes critical.

Bitcoin cities

Although Toulouse became the first European city to let residents use crypto to pay for public transport, several other countries boast various services that can be paid for in crypto:

  • Argentina: In 2019, Argentina allowed its citizens to top up the SUBE cards used in around 60 cities to pay for public transport with crypto.
  • United Arab Emirates: Dubai is arguably one of the first so-called “Bitcoin cities” that come to mind when considering places to spend Bitcoins. Although Bitcoin is not registered as a legal tender in the United Arab Emirates, it can be spent there in hotels, malls, and restaurants. It is possible to rent a vehicle or book a flight using Bitcoin. Real estate purchases are also possible via crypto in Dubai. Those who don’t feel confident using online crypto exchanges may use one of the city’s crypto ATMs.
  • Switzerland: Another notable example is the city of Zug, dubbed “Crypto Valley.” The city hosts the same crypto conference, while Switzerland itself is a well-known cryptocurrency hub. Zug allowed its residents to pay in Bitcoin for services (i.e., taxes) back in 2016. 
  • China: Hong Kong, considered a special administrative region, is another place where people can pay for dinner with Bitcoin. Immigrants can also use Bitcoin, Ethereum, and other digital assets as proof of wealth when visiting Hong Kong. 





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HK Asia Holdings Becomes First In China To Adopt Bitcoin Treasury

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HK Asia Holdings (HKEX: 1723), soon to be renamed Moon Inc., has made history as the first publicly traded company in Greater China to adopt a Bitcoin treasury strategy. In a recent discussion hosted by Allen Helm of Bitcoin For Corporations, new CEO John Riggins outlined the company’s pivot, its regulatory alignment with Hong Kong, and the broader momentum building across Asia.

Riggins, a longtime Bitcoin advocate with extensive experience across China and Southeast Asia, explained that the move was driven by both long-term conviction and a favorable shift in regulatory posture in Hong Kong. He said the company had spent months consulting with regulators, public market investors, and local partners before executing the transition.

Originally focused on SIM cards and prepaid tech products, HK Asia Holdings now aims to integrate Bitcoin both as a balance sheet asset and into its business model. This includes plans to roll out Bitcoin-related offerings through its retail footprint, such as ATMs and prepaid Bitcoin products.

The company’s first steps included the acquisition of 8.88 BTC during a post-acquisition period, followed by another 10 BTC purchase once the leadership transition was finalized—bringing its total holdings to 18.88 BTC, valued at over $1.7 million at the time of announcement. Riggins said further accumulation is planned, though it will proceed in accordance with Hong Kong’s measured but transparent regulatory guidance.

“We see it as a way to protect our balance sheet, and we see it as a way to diversify, our treasury with an eye on how the rest of the world is moving,” said Riggins.

The strategic intent goes far beyond speculation. Riggins framed Bitcoin as a hedge against macro uncertainty, a tool for long-term resilience, and a bridge to emerging global financial infrastructure. He also emphasized how corporate boards in the region are beginning to engage more seriously with the idea, pointing to MetaPlanet in Japan and Strategy in the U.S. as compelling precedents.

While Asia’s corporate Bitcoin adoption is still in its early stages, interest is growing fast. Riggins highlighted South Korea, Thailand, Malaysia, and Indonesia as markets with clear potential to follow suit. Much of the movement, he noted, is happening quietly behind the scenes—especially in China, where institutional stakeholders and state-connected investors are actively monitoring U.S. policy shifts and corporate adoption trends.

“I’m flooded with messages more and more from, people in the government, people, you know, institutional investors who are kinda watching this space closely looking for inside information about what’s happening here,” said Riggins.

Although no formal public moves have been announced by Chinese state entities, Riggins believes Bitcoin is already being held indirectly through government-affiliated organizations, including state-connected investment arms. He suggested these holdings may be more significant than publicly known. With the U.S. moving toward a strategic Bitcoin reserve, he sees China closely watching—and potentially following—if global policy momentum continues to shift.

Looking ahead, Moon Inc. plans to expand its Bitcoin holdings within Hong Kong’s regulatory framework and serve as a model for other Asian companies exploring similar strategies. The company will co-host Bitcoin Asia this August in Hong Kong, positioning itself as a regional trailblazer and helping catalyze broader corporate adoption across Asia.

Disclaimer: This content was written on behalf of Bitcoin For Corporations. This article is intended solely for informational purposes and should not be interpreted as an invitation or solicitation to acquire, purchase, or subscribe for securities. For full transparency, please note that BTC Inc., the parent company of UTXO Management, holds a stake in HK Asia Holdings Limited (1723.HK) in partnership with Sora Ventures and other entities.



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California Senator endorses Bitcoiner for seat on $500b pension fund board

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California State Senator Ben Allen is eyeing further pro-crypto representation with an endorsement of Dom Bei for election to the board of California’s public pension fund.

Bei is the founder of Proof of Workforce, a Bitcoin (BTC) non-profit focused on promoting BTC adoption via educational initiatives targeting workers, unions and pension funds. He is in the race to join the California Public Employees’ Retirement System, CalPERS, as a board member.

Notably, CalPERS is the largest public pension fund in the United States with over $500 billion and serves more than 2 million public retirement system members. CalPERS manages the retirement assets of California’s police department, firefighters and teachers among others.

The pension fund also counts over 1.5 million individuals as members of its health program.

CalPERS board of trustees comprises 13 members. Endorsement from Sen. Allen could see Bei become the first bitcoin advocate to get elected.

“I’ve dedicated over a decade to championing workers and wage-earners. Now, I’m running for CalPERS Board of Trustees to protect our nation’s largest public pension, serving 2M+ participants,” Bei noted in a post on X. 

The former firefighter previously served on the advisory board of the Santa Monica pension fund. His pro-bitcoin voice has seen him get support from across several players in the industry. 

According to observers, election to CalPERS will be crucial to the overall push for BTC adoption across pensions and other public sector platforms. With his experience and as a Bitcoin holder, Bei could see the largest pension fund in the U.S. explore and potentially add the flagship digital asset to its holdings. 

Other than Senator Allen, Bei has received endorsements from more than dozen state legislators. Santa Monica mayor Lana Negrete and California treasurer candidate Tony Vazquez have also talked up his chances. Meanwhile, Anthony Pompliano, founder and chief executive officer of Professional Capital Management, has also added his support.

In 2024, several pension and endowment funds disclosed exposure to Bitcoin, with this coming amid the rapid adoption that followed the Securities and Exchange Commission’s approval of the first spot BTC exchange-traded funds. They include state pension funds and multiple university endowment funds.



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