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First Ever Bitcoin Freight settlement of 3,000 Metric Tons of Wheat made

Jan 25, 2018 Posted /  6324 Views

First Ever Bitcoin Freight settlement of 3,000 Metric Tons of Wheat made

The mainstreaming of cryptocurrencies is becoming more and more evident as they are now being openly used for day to day payment settlements of almost all kinds of goods and services. Some media people are establishing that just recently a freight consignment was settled in bitcoin. It is said to be the first ever bitcoin payment for a freight constituting 3,000 tons of wheat from Rostov to Turkey.

It is being said that the deal was made last month when the freight from Russia was sent to Turkey and settlement was basically a part of a pilot project the company is testing. According to a firm called Prime Shipping Foundation (PSF) the company's pilot project comprises of blockchain empowered settlements for consignments of large volume.

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PSF’s founder and CEO Ivan Vikulov expect that the company’s testing can facilitate in processing freight deals further flexibly with the help of cryptocurrencies. When the project was in research and development stage, PSF collaborated with a  Quorum Capital Ltd, and a ship management service called Interchart LLC.

“We are trying to develop a cross-border payment system that’s easier and faster than what’s available now,” explains Vikulov in a recent interview.

The sources reveal that these are the initial transactions that have taken place in cryptocurrencies for the freight deal and it depicts that the bigger companies are switching away from the traditional banking system.

The freight ship carried 3,000 metric tons of wheat from the Russian area of Rostov and it was carried to Samsun, Turkey. This means that PSF and many companies like it are looking for payment systems that have easy cross-border access and could circumvent international sanctions in these areas particularly. Vikulov remarks that his firm is premeditating to get a licensed in Gibraltar as the country has given favourable indications for cryptocurrency payment solutions. Vikulov describes

“Most of the world’s tonnage is currently registered offshore — The flexibility of these jurisdictions creates a good foundation for the development and the potential switch away from the classical banking system towards a much simpler payment system.”

In fact, there are some other projects to that are in pipeline and will soon disrupt the operations of the cross-border freight industry. A project called Blockfreight utilizes both the bitcoin (the Counterparty system) and ethereum blockchain while also using the IPFS (Inter-Planetary File System) protocol within the global supply chain. Julian Smith, Blockfreight’s Co-founder and CEO told the media at the Texas Bitcoin Conference that he visions that bitcoin will soon become the underlying settlement of systems when there are huge transactions taking place especially the trillion dollar settlements of freight businesses. Moreover, Smith maintains that supply chain dealers won’t even know bitcoin will be operating undercover in the system.    

The haters may say that 3,000 tons of wheat settled in bitcoin is not engaging and especially in comparison to the swathe of luxury home purchases and Lamborghinis bought this year. However, companies connected with the supply chain consider the recent deal is a breakthrough.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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