BASF and Evonik test blockchain for payment transactions

Monday 24 May 2021 13:55 CET | News

The Germany-based chemical groups BASF and Evonik have announced carrying out a supply chain blockchain project in collaboration with Commerzbank.

The partners first tested blockchain technology and programmable money in November 2020 for bilateral supply chain processes handling. According to a Commerzbank representative, programmable money has potential for supply chain digitisation and this project is a step further in the use of blockchain-based payment solutions. In a previous pilot project, Evonik and BASF used the data service provider Elemica to transfer business process-relevant data to Commerzbank's cloud-based blockchain platform in their day-to-day business.

The payments were then processed via the blockchain with smart contracts using a digital euro, also called cash on ledger or e-euro. For this method, money is first stored in digital, encrypted form as e-euros in an electronic wallet, and once a payment is made, the e-money is passed on to the recipient, who can request a transfer to their Commerzbank account. According to Evonik, BASF and Commerzbank, the partners want to deepen the use of this payment method and expand it with other supply chain business partners throughout 2021.

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Keywords: partnership, blockchain, payment processing, supply chain finance
Categories: Banking & Fintech
Countries: Germany
This article is part of category

Banking & Fintech