The Potential Impact of Cryptocurrency on the Wine Industry

The potential impact of Cryptocurrency on the Wine Industry
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Part One: Research
It is widely accepted that wine industry has been coupled with several issues such as its
provenance and inability to reduce transaction fraud. Adoption of cryptocurrency technology in
the industry is expected to have substantial impacts globally (Collomb & Sok 2016, pp. 96-97).
With the adoption of cryptocurrency in the wine industry, issues such as product quality, retailers
and product storage would be resolved. Some organizations worldwide are known for
counterfeiting wine products which makes the wine production non-performing industry. A good
example can be deduced from Brunello Company which has been involved in the wine scandal
by counterfeiting original wines products with the inferior wine products. On the same note, it
has been revealed that some wine bottling industries have been producing sub-standard bottles
for wine packaging. To resolve these issues which might cripple the wine industry if not
controlled, wine manufacturers can embed some smart sensors or chemical analysis chips on the
products (Aste, Tasca & Matteo 2017, pp. 26). In this regard, it would be possible for the wine
manufacturers to identify their products, distributors and even retailers. The use cryptocurrency
technology can be adopted in wine-bottle manufacturing to control counterfeiting and the quality
of the wine bottling industry. The most important aspect that cryptocurrency technology would
solve include; quality of the wine products, reduce counterfeit wines products by identifying
accredited distributors and certified wine local retailers. Finally, some wine manufacturing is
planning to use Blockchain to establish a direct connection between manufacturers and wine
lover birds. This would eliminate all middlemen involved in the wine supply chain industry who
compromise the quality of the wine products. It is obvious that cryptocurrency would increase
customer trust, increase wine business competitiveness and increase the organization's profit
margin (McLean & Deane-Johns 2016, pp. 98).

Part Two: Brainstorming
1. Adoption of cryptocurrency would affect supply chain management in the wine industry
by eliminating middlemen from the distribution of wine products (Kbilashvili 2018, pp.
4).
2. Cryptocurrency would change completely the transaction processes involved in the wine
industry by introducing new soft currency rather than tangible money.
3. Manufacturers would be able to realize the high-profit margin from their business by
establishing direct contact with its final consumers.
4. Cryptocurrency would make it possible to improve the quality of the wine products by
being in touch with final consumers who offer feedback and recommendations on the
needs to change the taste or price of the products (Demertzis & Wolff 2018, pp. 9).
Part Three: Regulation and ethics
The selected technology is the introduction of new methods of payments which would
change transaction processes in the wine industry by introducing a new form of currency.
Cryptocurrency has been introduced in the financial market which makes it possible to make
payments online through the use of soft currency (Bailis et al. 2017, pp. 48). Changing methods
of payments would have substantial impacts on the following aspects;
1. Existence of Blockchain technology in the financial sector has made it possible to support
cryptocurrency adoption in other business sectors such as the wine industry.
2. Most of the countries and technology firms worldwide have started to recognize
cryptocurrency as an accepted mode of payments which makes it widely accepted in the