- Volvo Group revealed it explored a proprietary cryptocurrency to simplify supplier payments.
- The company says blockchain is being evaluated for real business value.
- Volvo believes decentralized ledgers can improve supplier trust and compliance.
Volvo Group is testing how blockchain can simplify supplier payments and supply chain data, with one internal project exploring a proprietary cryptocurrency for transactions between the company and its logistics partners.
The initiative was revealed during an interview between the Cardano Foundation and Ivan Branco, who leads information management, AI, and analytics for Volvo Group’s logistics operations in Belgium.
Volvo Looks Beyond Crypto Speculation
Branco said Volvo evaluates blockchain the same way it assesses any other technology, i.e., by starting with a business problem instead of the technology itself. He argued that blockchain continues to suffer from a “false stigma” because many people immediately associate it with cryptocurrency trading instead of enterprise applications.
According to Branco, Volvo sees blockchain as a way to replace isolated systems with a shared, trusted network where multiple parties can securely exchange information.
The company believes decentralized ledgers can improve data quality, strengthen security, and reduce the need for organizations to rely on separate databases that often contain conflicting information.
Proprietary Cryptocurrency Tested for Supplier Transactions
One of Volvo’s internal blockchain explorations involved creating an enclosed payment system connecting material suppliers, transport suppliers, and Volvo itself.
Branco disclosed that the company developed a proprietary cryptocurrency for the experiment. Instead of suppliers using different national currencies, every participant in the network would transact using a single digital token created specifically for the project.
The blockchain would also record transportation orders and transaction data in a shared ledger, allowing every participant to access the same information.
He explained that the goal was to reduce complexity in supplier payments while making information exchange faster and more consistent.
The project remains an exploration rather than a production deployment, but Branco said Volvo believes blockchain can significantly simplify these processes.
Supply Chain Tracking Remains a Major Focus
Volvo also sees blockchain solving long-standing supply chain issues, particularly around country-of-origin data and regulatory compliance.
Branco explained that manufacturers often receive incomplete or inconsistent information from suppliers as data moves across multiple internal systems. A shared blockchain ledger could preserve the original data, making it easier to verify where every component originated.
The issue has become increasingly important as global trade restrictions tighten and new regulations require companies to prove where components come from.
Branco noted that incorrect country-of-origin information can expose manufacturers to substantial regulatory fines, especially when products or components move through restricted markets.
He added that blockchain could also support product lifecycle tracking, remanufacturing programs, electric vehicle supply chains, and future digital product passport requirements by giving every participant access to the same verified records.
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