Volvo Group Tests Proprietary Crypto for Supplier Payments

Volvo Group sees blockchain applications beyond payments. The company is preparing for Europe's Digital Product Passport requirements and wants to improve product traceability and regulatory compliance. Branco noted the difficulty of tracking spare parts' country of origin, especially after the Russia-Ukraine conflict triggered EU trade restrictions.

He said, "When you had the Russia-Ukraine situation where the European Union said you don't ship any more goods towards Russia, you need to know if the goods are getting to Russia, for example, because you're sending them to importers who might then resell those parts and you're still liable."

Branco also acknowledged barriers to blockchain adoption across industrial systems. He cited legacy infrastructure, limited blockchain expertise, scalability questions, maintenance, and ongoing support requirements. Volvo Group said these factors remain important in its evaluation.

A separate company in the broader corporate family has already used blockchain for manufacturing traceability. Volvo Cars introduced blockchain-based cobalt tracking for electric vehicle batteries in 2019, aiming for greater transparency in battery supply chains.

Volvo Group continues to assess blockchain use cases that could strengthen logistics, compliance, and supplier coordination. The cryptocurrency concept has been presented as an internal test, with no commercial deployment or production timeline announced.