Major Car Manufacturers to Test Automatic Blockchain Payments

BMW, General Motors, Ford, Renault and Honda will begin tests of a blockchain-based vehicle identification and payments system next month, Nikkei Asian Review reported.

According to the report, the five automakers are working with the Mobility Open Blockchain Initiative (MOBI) to integrate a blockchain system that will assign digital IDs to cars, which will be linked to ownership, service history and wallet.

The aim of the new system is to let owners make automated payments on highway tolls and parking fees without the need of cash or cards.

The new blockchain-based system, the report continues, could even let connected electric cars record all rest stop purchases and fees along the way, and pay them automatically once the car has been plugged in to recharge its battery.

MOBI is an international consortium, founded in May 2018 by multiple car manufacturers, that aims to enable sharing of road data and support projects such as this.

Back in July the consortium’s Vehicle Identity (VID) Working Group released its first standard, as part of its mission to create a DLT-based VID.

Other automakers have also been making strides in the blockchain space. Last month Mercedes-Benz’s parent company, Daimler AG, used R3’s Marco Polo trade finance network to conduct a pilot blockchain transaction with parts builder Dürr AG.

Even before that, in August, Daimler tested blockchain-based machine-to-machine payments with its trucks.