Wednesday 2nd October, 2019
Tradeshift and fintech company, Monerium have announced the successful completion of a transaction that marks a major step forward in business payments and finance.
Using Tradeshift’s platform and smart contracts on the Ethereum blockchain, Icelandic retailer Nordic Store purchased goods from IKEA Iceland and settled an e-invoice with Monerium’s programmable digital cash.
With the transaction, Monerium and Tradeshift make a statement that government-regulated, programmable e-money is ready for mainstream markets. A new category of blockchain-powered payments is now a reality.
“Programmable money regulated by governments will become the foundation for e-commerce payments because they enable so called ‘smart contracts.’ Smart contracts have many use cases. For example they can be used to generate ‘Smart Invoices’, which are invoices that basically settle themselves,” said Gert Sylvest, co-founder of Tradeshift and GM of Tradeshift Frontiers, a digital incubation unit.
“We see smart invoices not just as useful for lowering administrative hurdles in business-to-business (B2B) cross-border transactions, but for building new financing models that makes it easier for enterprises to improve access to credit and improve cash flow. That is why we have built the world’s first smart invoice and now settled it with licensed digital cash together with Monerium. This is an important step forward.”
Earlier this year Monerium received a license to issue currencies as e-money on blockchain. The transaction was settled with Icelandic Krona, the first of several currencies Monerium will support.
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.”