Tobacco Giant Philip Morris Estimates It Could Save Up to $20 Million by Using Blockchain

Published at: April 26, 2019

International tobacco company Philip Morris is considering blockchain use in tracking tax stamps on cigarette boxes, the firm’s spokesperson confirmed to Cointelegraph on April 26.

Philip Morris International is looking to implement emerging technologies such as blockchain in order to improve the efficiency, transparency and cost effectiveness of its business, the company’s representative said in an email to Cointelegraph.

Specifically, Nitin Manoharan, Philip Morris’ global head of architecture and tech innovation, has recently estimated that Philip Morris alone could save up to $20 million by reducing tax stamp paperwork and fraud with blockchain, according to crypto industry news outlet CoinDesk. Manoharan reportedly claimed that manual work and the associated counterfeit risks end up costing the industry and governments $100 million a year.

While Manoharan reportedly said that tax stamp tracking is only one of six blockchain applications that Philip Morris is looking to go live with next year, the company’s spokesperson clarified to Cointelegraph that Philip Morris will follow the government’s guidance on the matter.

Earlier this year, Reuters reported that a number of tobacco shops in Paris started selling bitcoin (BTC) for fiat money despite the regulatory uncertainty.

Recently, Iota and Internet of Things (IoT) firm Evrythng announced a partnership to apply blockchain and IoT tech to leverage better transparency for consumer goods supply chains.

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