Porsche to secure $170m loan using a blockchain platform?

Back in September, IOTA and Volkswagen announced their plans to launch blockchain-enabled cars in 2019. This is a prospect that could have many positive implications, such as buying and selling cars on a blockchain where the buyer would then receive the private key to the car. In theory, and with the right application, this could prevent issues such as car theft since a blockchain-enabled car can only be unlocked by the owner of the private key.

Now, Porsche are reportedly on the verge of closing a deal with Spanish-based bank Banco Bilbao Vizcaya Argentria (BBVA) via blockchain technology, at least according to a report from The Innovation Enterprise.

The deal is rumoured to be in the ballpark of $170 million, and if completed will run through BBVA’s distributed ledger technology (DLT) platform. Allegedly, it will support “strategies acquisitions in the retail distribution network in Europe and Asia.”

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In the report, Dominik Paschinger, branch manager of Porsche Corporate Finance in Belgium, is quoted as saying:

“With digitalisation being an integral part of the Porsche Holdings Strategy 2025, the goal is to advance in all fields of activity. We think that blockchain technology has great potential and are therefore very excited to be able to explore the technological capabilities with BBVA.”

One aspect of blockchain technology that is increasingly popular is immutability, and the fact that any transactions that are processed remain transparent. This should in theory enable people to trace where and when cars have been purchased, reducing the potential for fraud and making any potential stolen cars immediately traceable.

It remains to be seen how blockchain technology will be utilised within the car industry. But as always, it’s a good thing that blockchain technology is garnering international reputation in all industries.

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