BMW, Ford, Honda and Others to Test Blockchain ID System for Cars
NEWS
October 14  |  2 min read

BMW, Ford, Honda and Others to Test Blockchain Vehicle ID System with Automatic Payments

The COIN360 Editorial Team

As per an Oct. 14 press release, the Mobility Open Blockchain Initiative (MOBI) is partnering up with BMW, Ford, General Motors, Renault, Honda, and “other major automakers” to develop a Proof of Concept for a blockchain-based vehicle identity (VID) system. The companies will begin field tests of the system next month, which will reportedly include a car identification and an automated pay system.

The identification system will assign vehicles a trusted digital ID and a digital wallet, collecting relevant information to store it on the blockchain. Information and activity such as ownership history and a record of acquired services will be stored on the blockchain.

Thanks to this, cars can be recognized and identified while on the road, which allows for the automatization of payments. According to MOBI CEO Chris Ballinger, a vehicle’s digital identity unlocks the potential for a mobility payments network, which will supposedly include V2V (vehicle-to-vehicle) and V2X (vehicle-to-everything) transactions, congestion pricing, carbon footprint management, among other uses.

With the system, payments will be associated with a vehicle itself rather than a payment account. Payments such as parking, highway tolls, and rest stops could be streamlined and automated; they would be automatically paid once the vehicle is plugged in and charging.

Another potential long-term benefit of the system is the creation of mobility networks, wherein vehicles can communicate with each other to provide trusted information related to the movement of other connected cars.