Volvo Group explores proprietary cryptocurrency for supplier payments
Volvo Group is exploring the use of a proprietary cryptocurrency within a private blockchain network for settlements with material suppliers and logistics companies. The project remains at the conceptual stage and is not currently used in commercial operations.
The information was disclosed by Ivan Branko, Head of Information Management, Artificial Intelligence and Analytics at Volvo Group Trucks Operations, in an interview with the Cardano Foundation.
According to Branko, the company is considering the creation of a closed blockchain ecosystem involving Volvo, its suppliers, and logistics partners. Transactions within the network would be conducted using a purpose-built cryptocurrency.
"We have also explored, together with some transportation companies, whether it is possible to create a closed blockchain environment for settlements between the material supplier, the carrier, and ourselves using our cryptocurrency developed specifically for that purpose," Branko said.
Volvo Group explores blockchain for supply chains
The initiative is part of Volvo Group's broader strategy to integrate blockchain technology into supply chain management.The company is evaluating blockchain's potential to provide end-to-end traceability of components and help comply with new European Union requirements, including the introduction of the so-called Digital Product Passport.
According to Branko, one of the industry's key challenges is tracking the country of origin of components and finished vehicles. Failure to comply with sanctions and regulatory requirements can result in significant financial consequences for manufacturers.
As an example, he cited European Union restrictions on exports to Russia introduced following the start of the full-scale war in Ukraine. Manufacturers are required to monitor the movement of their products even after they have been sold to authorized importers.
The project remains in the pilot phase
Despite blockchain's potential, Volvo Group acknowledged several barriers to broader adoption, including the complexity of integrating blockchain solutions with existing IT systems, a lack of expertise, and concerns related to scalability and infrastructure support.The company has not announced a timeline for a commercial launch and continues to evaluate the project's potential benefits and risks.
Meanwhile, other automakers are expanding their experiments with digital assets. Recently, Hyundai completed its first cross-border stablecoin payment between its U.S. and Mexican subsidiaries. The company converted $20,000 into USDT and transferred the funds via the Avalanche network, reducing settlement time from several hours to just seven minutes.
Earlier, representatives of the U.S. automotive industry held discussions with the administration of President Donald Trump regarding proposed reforms to right-to-repair legislation for motor vehicles.
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