Commerzbank tests 'cash on ledger' for machine-to-machine payments

Commerzbank is testing a blockchain-based machine-to-machine payment system with Daimler Trucks.

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Commerzbank tests 'cash on ledger' for machine-to-machine payments

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The pilot project involved the exchange and settlement of payments between an electronic charging point and a Daimler Truck system without any human intervention.

For the transaction, Commerzbank issued euros on a blockchain and provided Daimler Trucks with 'cash on ledger' to process the payment.

The system is aimed at a new generation of interconnected machinery capable of operating with rising degrees of autonomy. The provision of mutual payments as part of the interaction is a logical next step with the potential for increasing efficiency gains in supply chains, says Stephan Müller, divisional board member transaction banking, Commerzbank.

“After having completely digitised securities transactions in past pilot projects, the focus is now shifting to DLT-based payment structures," he says. "As a bank we see our mandate as creating new digital payment architectures for our clients."

He adds that further development steps for e-money-based payment processing are being investigated in collaboration with industrial partners in the chemicals sector, in manufacturing and in the real estate industry.

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