Volvo Tests In-House Cryptocurrency in Blockchain Supply Chain Project

Volvo Group is exploring the potential of blockchain technology and cryptocurrency to improve supplier payments and supply chain management. The company's project involves testing a proprietary cryptocurrency for transactions with selected transport providers.

Ivan Branco, a senior logistics manager at Volvo Group in Belgium, explained that the decision to use blockchain has nothing to do with its novelty as a technology. Instead, it is about solving business problems. He emphasized that many companies equate blockchain only with cryptocurrencies, creating unnecessary apprehension about its use.

The private cryptocurrency pilot aims to establish a closed system where payment methods are reduced and information exchange becomes easier within the supply chain. Using a single currency for transactions, the experiment has enabled faster communication and minimized complications associated with supply chain data management.