Written by Jason Shueh

The future may have drivers paying for parking with bitcoin and other digital currencies.

This is idea behind a smart parking payment system from the engineers at NetObjex, an Internet of Things (IoT) company based Irvine, California. In a news release last week, the company said it has debuted a new smart parking payment platform that is one of the first systems to allow vehicles to automatically pay for parking with cryptocurrency, digital cash that is tracked using a public ledger.

NetObjex’s service uses a cryptocurrency called IOTA to equip vehicles with digital wallets that can pay for a parking space once sensors from the vehicle and the parking space detect each other. The company says the obvious benefit is convenience, but also advertises that a higher level of security that can be enjoyed through the use of blockchain-backed currencies like IOTA.

“The smart parking solution is a practical demonstration of the NetObjex platform in bringing together state-of-the-art capabilities in the form of IoT sensor technology, long range wireless communications, decentralized networks and cryptocurrency,” Raghu Bala, the company’s CEO, said in a news release.

The service — which is paired with sensors from PNI and wireless technology from Advantech — is an example of the advances in the transportation and transit industries. The solution may also be a precursor to the adoption of autonomous vehicles in cities as cars search for new ways to automate tasks traditionally handled by human operators.

Cryptocurrency parking solutions may gain traction as smart cities technologies become more popular. In September, research firm IDC reported that smart parking technology has potential to be a draw for cities looking to reduce the incidence of unpaid parking tickets and through demand-based pricing.