On Oct. 1, it was reported that supply chain payments firm Tradeshift had helped complete a transaction between IKEA Iceland and Icelandic retailer Nordic Store. The settlement was made using Tradeshift’s platform and the Ethereum-based version of the Icelandic króna created by fintech company Monerium, which received regulatory approval by the Financial Supervisory Authority of Iceland (FME) to issue digital fiat currencies as e-money on the blockchain in June of this year, to be used within the European Economic Area.
According to Monerium CEO Sveinn Valfells, this type of payment will potentially help with cross-border payments across different jurisdictions, “unlike cryptocurrency which is volatile, e-money is a proven digital alternative to cash, regulated and redeemable on demand”.
Valfells mentioned that although electronic money is not something new, using smart contracts for e-money is in fact a new alternative that might help accelerate those processes, and that they are “delighted to demonstrate the benefits of blockchains for mainstream B2B transactions using a legal form of digital money”.
Stefán Árnason, CFO of IKEA Iceland, said “a programmable financial supply chain, where trading partners can connect information flows to money flows through smart contracts, will transform how suppliers and customers interact.”