Inside money, markets, and big tech

IKEA just allowed an invoice to be paid via the Ethereum blockchain

Nordic Store paid for goods using digital Icelandic króna

IKEA Iceland has used Ethereum ETH 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.

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.”

Want more Hard Fork? Join us in Amsterdam on October 15-17 to discuss blockchain and cryptocurrency with leading experts.

Published October 2, 2019 — 13:33 UTC