German Automaker Uses ETH Blockchain In Financing Vehicles, Being The First In European Union
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Auto1 FT, a financial partner firm that services the automobile industry, has become the first European company to finance the purchase of vehicles using Ethereum smart contracts.
According to a press statement, the initiative aims to eliminate all paperwork in order to simplify its core business of car finance and leasing.
Smart contracts will be used to ease the entire financing process. With blockchain technology’s immutability and greater transparency, Auto1 FT aims to decrease costs and errors as well as increase efficiency.
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Their digital solution offers substantial efficiency benefits for car dealerships while also setting new standards for other businesses in the mobility sector.
The Huge Prospect of Smart Contract
The usage of smart contracts helps to lower the total cost of financing a car and the documentation needed to a bare minimum. Its improved data security, along with faster and less costly applications, also leads to improved efficiency.
Auto1 FT Managing Director Taimur André Rashid explained that “with the presence of blockchain technology, financial mistakes and misunderstandings are virtually impossible to arise.”
The system will also be responsible for managing payment methods, calculations, fees, and the all-important credit rating for the automobile firm.
Auto1 FT Determined To Change the Automobile Industry
Auto1 FT offers easy digital financing alternatives for the used car market, and the usage of blockchain technology allows for the consolidation of all vehicle-related contractual information into a single agreement, paving the way for the complete digitalization of the used car sector.
Aside from that, Auto1 FT has developed a system that helps car dealerships by providing flexible and quick liquidity resources.
The move is anticipated to radically alter the European auto financing sector, with a focus on data protection and efficiency.
According to the company, the most recent blockchain integration is one of the first steps towards broadening the reach of the digital value chain.
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It is worth noting that Auto1 FT is not new to the field of blockchain technology. In June 2021, the company made history by being the first German automaker to conduct a security token offering (STO).
The transaction was made public in order to tokenize a corporate bond with a market value of €4 million.
German Markets Are Yet To Be Fully Revived
Inflation in the European Union hit its highest level in more than a decade as a consequence of increasing energy prices. In September 2021, Eurozone inflation rose by 3.4% year-to-date, the highest rate since September 2008 and a rise from 3% in August 2021.
The European market is also concerned about the increasing cost of electricity. There is concern that the increase in energy prices will have an impact on the European Union’s recovery.
As of now, appropriate ministries from each European Union member country are organising an international conference call to discuss the looming problem.
At the same time, the wider European market is dealing with the fallout from Germany’s election, which has raised uncertainty for the country as a whole.
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