IKEA Iceland has used Ethereum technology to settle an invoice with a local retailer, accepting payment in blockchainified digital cash.
Supply chain payments firm Tradeshift facilitated the transfer using an Ethereum-based version of the Icelandic króna created by ConsenSys-backed startup Monerium.
A press release confirms the payment was executed on behalf of Nordic Store using smart contracts programmed on the Ethereum blockchain.
“As the first company authorized to issue e-money on blockchains, we are delighted to demonstrate the benefits of blockchains for mainstream B2B transactions using a legal form of digital money,” said Monerium CEO Sveinn Valfells.
IKEA’s foray into Ethereum is possible due to a landmark regulatory decision that allows Monerium to issue digital fiat for use within the European Economic Area.
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While electronic money has been around for a long time in Europe, settling invoices in digital fiat with smart contracts is something new. It’s hoped this will accelerate cross-border payments across multiple jurisdictions.
“Unlike cryptocurrency which is volatile, e-money is a proven digital alternative to cash, regulated and redeemable on demand,” said Valfells. “Using programmable e-money in smart contracts heralds a new category of payments.”
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