For the first time, IKEA Iceland allowed an invoice to be settled with a local retailer using Ethereum. Ethereum technology is a type of blockchain digital cash used to make purchases online.
Tradeshift is a supply chain payment firm that was responsible for facilitating the unique payment transfer. It was completed using a version of the Icelandic króna created by Monerium, a ConsenSys-backed startup company.
Stated in a recent press release, IKEA confirmed the payment was executed using smart contracts on behalf of the Nordic Store to be programmed for the Ethereum blockchain. Sveinn Valfells is the CEO of Monerium. He spoke of his company’s delight to have been the first to authorize the use of e-money on blockchains. His company also wants to highlight the benefits of using blockchain technology as a legal form of tender for making B2B transactions digitally.
IKEA’s decision to accept the blockchain payment was because of a landmark regulatory decision that will allow the use of Monerium to be used as a digital fiat within the European Economic Arena. In Europe, electronic money has been mainstream for a long time. However, the ability to settle invoices using a digital fiat and smart contracts is entirely new to the scene. There is a lot of hope that this change will speed up payments across borders and multiple jurisdictions.
E-money has been proven to be more reliable, regulated and redeemable that cryptocurrency. Crypto has had a lot of backlash as a volatile means of payment. E-money is the best digital alternative to using cash. There is a new category of payment methods that include programming e-money using smart contracts that will change the shape of the economy and B2B business transactions.
E-Money License
In June, the Financial Supervisory Authority in Iceland announced they would allow Monerium to be the first legal electronic money provider. This decision allows the provider to deliver its services throughout European Economic Arenas using blockchain technology. In a press release, Mr. Valfells stated that this new e-money license was going to be a huge milestone towards the goal of making digital currency secure, accessible and simple to transact.
Smart invoices have more benefits beyond lowering the hurdles of business-to-business administrative transactions. They will also help build financing models that will be easier for organizations to use and help improve their access to credit and capital. IKEA’s first blockchain payment was made possible because of Tradeshift’s payment models.
