Luxury car manufacturer announces acceptance of Bitcoin payments

Karma Automotive is a luxury electric vehicle manufacturer based in California, which recently announced that it has started accepting cryptocurrency as a payment method at a store in Newport Beach.

According to the company's press release, Karma Newport Beach now allows customers to use Bitcoin (BTC) to pay for new car purchases and related services. CEO Lance Zhou stated upon the announcement of the new product:

We are opening this store as a test platform and attempting to convert theoretical blockchain applications into practical use to demonstrate new technology and provide the latest VIP customer treatment products by accepting Bitcoin cryptocurrency.

Cryptocurrency and Luxury Goods

Indications show that cryptocurrency has entered the luxury goods industry through functionality and payment forms. For example, in September 2018, the Swiss luxury watch brand Hublot released its "Big Bang Blockchain" watch, which can only be purchased with Bitcoin; Franck Muller's cryptocurrency wallet watch retails from $9,800 to $50,600.

Blockchain Technology in the Automotive Industry

As mentioned in a previous article I wrote, the tracking features of blockchain can be used in car parts, especially for some expensive models, as the cost of exchanging damaged parts can be significant.

Today, car manufacturers worldwide are constantly experimenting with using encryption technology in another aspect, such as Ford Motor Company researching blockchain and geofencing technology to accurately track the "green miles" driven by its energy-efficient vehicles. Others like BMW, General Motors, Ford, Renault, and Honda are beginning to test blockchain car identification and payment systems in the United States.

In September this year, Indian automaker Tata Motors announced a plan to apply blockchain solutions to various aspects of the automotive industry, including parking markets, demand forecasting algorithms, and real-time monitoring of fuel quality.

Related Reading

• The market continues to fluctuate, with DeFi locked assets reaching a historic high
• The Swiss National Bank and the Bank for International Settlements reach an agreement on the development of "national digital currencies"

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