Although the automobile industry may not be the first industry people think of when contemplating blockchain technology, Toyota Research Institute Chief Financial Officer, Chris Ballinger, may soon have people thinking otherwise.
Speaking at Coindesk’s Consensus 2017 conference, Ballinger announced that Toyota believes that blockchains are going to disrupt the automotive supply chain.
Part of the reason why Ballinger believes that blockchains are going to alter the automotive supply chain landscape is because he believes these technologies have to capability of cutting out financial middlemen, and speeding up transactions, and thus supply chains themselves.
Speaking about blockchain transactions, Ballinger says, “The realization was the value was linked with the transaction, and this means that the transaction itself is a bearer instrument. And therefore all these problems tend to fall away.”
In other words, Ballinger has realized that Toyota, and potentially many other auto manufactures, can benefit from the fact that cryptocurrencies such as Bitcoin have the potential to make reliable, sound, and effective monetary transactions across vast distances, and borders.
Further demonstrating his belief in blockchains, Ballinger revealed that the Toyota Research Institute is currently work with Commuterz, Gem and Oaken Innovations, BigChain DB, and the MIT Media Lab to generate applications for blockchain technology.
This means that in the near future, Toyota could soon be making many financial transactions through apps that support cryptocurrencies. This could be a game-changing development for the automotive industry, and it could significantly alter payments in the field.
Speaking about the future of the automotive industry, Ballinger said, ““The future of mobility is shared, connected and autonomous, and when you think about what technologies are needed for that world, you think of the infrastructure, the IoT-blockchain angle.”
Ballinger’s revelations prove that major auto makers are beginning to plan to accommodate blockchain technology. This is highly significant for the auto industry.