German-based banking giant Commerzbank has created a blockchain payments solution that will enable a machine-to-machine (M2M) payment system and eliminate the need for human involvement. In today’s press release, Commerzbank mentioned that a completely automated transaction was tested and executed between a Daimler truck and an electric charging point. The pilot project between Commerzbank and Daimler fully automated the payments between an electricity charging station and a Daimler truck. To execute the transaction, the German bank transferred Euros to the blockchain referred to as a “cash on ledger” process to pay Daimler. With its main research & development incubator division, Commerzbank became the first German financial institution to develop and execute a blockchain payment system for machine-to-machine payments.
Commerzbank feels that the pilot demonstrates how blockchain can completely automate both charging and payment processes, eliminating the need for human interaction. In turn, this is likely to significantly increase efficiency for logistics markets as vehicle automation demand increases.
“Following the recent digitization of securities transactions and the use of blockchain technology, we are now focused on DLT-based payment structures. As a bank, we naturally also see our mission as creating new digital payment architectures for our customers,” said Commerzbank’s Divisional Board Member, Stephan Muller. The bank has successfully executed several blockchain trials in the past including processing a money market transaction, completing a legally binding settlement of a repo transaction, trade finance, and many others. Commerzbank is also looking into additional ways to leverage digital currency-based payments in partnership with major industrial firms.