10-18-2019 icon

BMW, Ford, Others Test Blockchain Payments for Cars

By Sagetwriter

Five major car manufacturers – BMW, Ford, General Motors, Honda and Renault will reportedly start testing blockchain car identification and payment systems next month.

According to reports, the 5-company partnership aims to test the vehicle identity system developed under the Mobility Open Blockchain Initiative (MOBI).

The initiative seeks to assign digital IDs linked to ownership, service history and wallet which would allow the vehicle pay fees without need for specialized hardware. The proposed system will also support electric cars to allow owners pay for tools, maintenance and purchases through a well recorded and automated platform.

Read about MOBI here.

Blockchain And The Automobile Industry

The use of blockchain technology for tracking vehicle raw materials and payments has become common in the automobile industry.

Last month, Mercedes Benz conducted a test transaction using a blockchain software. Its Chinese dealership also partnered with blockchain company PlatOn to create a platform for storing data and calculating prices of used cars at its Beijing outlet.

Mercedes Benz is also said to be building a crypto hardware wallet for cars.

For use in tracking, Chinese auto company Geely – owners of Volvo  produced electric cars, have mapped their cobalt supplies on a blockchain. The blockchain system looks to combat the cases of illegal mining of Cobalt in DR Congo, hence providing a system for the manufacturers  to track the source of minerals or raw materials before purchase.

This recent adoption and use cases of blockchain technolgy across various industries reemphasize the belief of software giant Oracle’s head of blockchain tech who stated that “about 50% of companies will be using blockchain  technology within  the next 3 years.