Policy and Regulatory Considerations for Blockchain and Federated Learning in IoV

Abstract

The union of Blockchain and Federated Learning (FL) technologies in the Internet of Vehicles (IoV) domain has ushered in new possibilities for privacy-preserving, decentralized, and cyber-resilient financial use cases. As autonomous and connected vehicles (CAVs) are integrated with edge computing and 5G/6G networks, these smart nodes increasingly engage in real-time financial transactions spanning from usage-based insurance, automated tolls, electric vehicle charging fee payments, to intelligent vehicle leasing and decentralized vehicular identity management. Such a dynamic scenario is best addressed by Blockchain technology, which provides a decentralized ledger system that promises immutability, transparency, and trust, which are perfect for authenticating transactions like insurance claims, micropayments, and contractual fulfilment in mobility finance. This enables IoV stakeholders to build predictive systems with data sovereignty and low latency. Even so, the joint employment of blockchain and FL in financial environments poses important regulatory and ethical challenges.