French automotive group LG Group has announced that it is now accepting cryptocurrency payments at its 24 bases across France and Spain through French platform Lyzi.
Transactions of any value in Bitcoin, Avax and Ethereum and 22 other digital currencies will be processed in the Lyzi app in minutes.
“We have been interested in the evolution of payment methods for several years. But we faced many obstacles, such as changing cryptography and tracing the source of funds. Being charged with money laundering was out of the question. And we went in circles. Until I discovered Lyzi after reading an article,” explained LG General Manager Gérald Imbert, as reported by La Dépêche.
The Automotive Industry’s Relationship with Cryptocurrency and Blockchain
Worldwide, the automotive industry is exploring cryptocurrency. For example, AutoCoinCars is a company that partners with dealerships and allows customers to buy cars with cryptocurrency. According to an article by AutoCoinCars founder and CEO Mustansar Iqbal for Irish Tech news, “for hundreds of leading UK car dealers, including Redline Specialist Cars, Saxton4x4 and Benz Bavarian, cryptocurrency is fast becoming the preferred method of payment”. Cryptocurrency is also used to pay for cars in other countries around the world; for example, in May Japanese e-commerce site SBI Motor Japan announced that Ripple and Bitcoin can be used to pay for used cars on its site.
Elon Musk originally announced in March 2022 that Tesla would begin accepting Bitcoin payments; however, the move was reversed in June of that year due to environmental concerns, and Musk stated that Tesla would allow bitcoin payments again “If there is confirmation of reasonable (~50%) clean energy usage by miners with a positive future trend.”
However, companies operating in this sector also offer more creative services using cryptocurrency. BitCar, another company, only accepts payments in Bitcoin and allows users to take ownership of expensive cars. In 2019, Jaguar Land Rover began offering cryptocurrency payments to drivers who shared data about (for example) road conditions or traffic jams.
The racing world is also exploring cryptocurrency. The emergence of the “fan tokens” phenomenon, offered by McLaren and Alfa Romeo among others, allows buyers to take advantage of features such as marketing campaigns and voting on team decisions.
Blockchain-based solutions to a variety of vehicle-related problems are increasingly turning to startups. Examples include One Car Payment, which allows vehicle owners to consolidate all vehicle-related payments into one monthly payment, VLB, which aims to make car maintenance and repair costs cheaper, and BigChainDB, which aims to centralize information about vehicles (eg maintenance, service providers) to combat fraud.
In 2021, Hyundai forayed into the metaverse, a blockchain-based virtual world concept, with the launch of the “Hyundai Mobility Adventure” metaverse space, which allows users to create avatars that meet virtually and use Hyundai products.