Iceland-based IKEA Utilizes Ethereum-Based Token To Settle An Invoice via Monerium

Renowned Swedish furniture store IKEA has used an Ethereum-based token to clear an invoice. According to the Nextweb, the payment was done with a local retailer using blockchainfield digital cash.

The payment was enabled by Tradeshift which is a supply chain payments management firm. The transaction was made using the digital Icelandic version of the Krona that was developed by Monerium.

According to a press statement released by Monerium, the company explained that the transaction made Monerium the first authorized provider of e-money for blockchains. The report also explained that programmable digital money that is under government regulations is now available for mainstream adoption.

Monerium was licensed as a digital money company by Iceland’s financial regulator in June this year. Monerium which operates from Reykjavik was able to raise $2 million in a funding round earlier this year and was backed by the biggest Ethereum development company, ConsenSys.

For Monerium to achieve the status of an electronic money institution, it satisfied the requirements set by the European Central Bank which was developed in 2009. Although the law has been in existence for about 10 years now, this marks the first time that such a settlement has been made in Europe using the digital form of fiat currency.

IKEA’s entrance into the Ethereum space is remarkable as it will help in enhancing adoption of the cryptocurrencies into mainstream use. The settlement of the invoice using digital money will also enhance easy and cheap cross-border payments.

Monerium CEO Sveinn Valfells explained that electronic money is less volatile than cryptos and can be used as an alternative to fiat and can easily be redeemed when needed.

Valfells also added that Monerium and Tradeshift are working together to change the financial landscape by providing a supply chain management solution where transactions can be settled immediately and at low costs. He also believes that the two companies can spread the solutions to other countries to support small companies.