Ikea invoice settled using Ethereum blockchain

Ikea Iceland has been involved in a real-life commercial blockchain transaction. Icelandic retailer Nordic Store purchased goods from Ikea and settled an e-invoice using ‘programmable digital cash’ from Reykjavik-based fintech start-up Monerium. The transaction was completed using a platform provided by supply chain management firm Tradeshift and smart contracts on the Ethereum blockchain.

Monerium and Tradeshift described the transaction as “a major step forward in business payments and finance”. It demonstrates that government-regulated, programmable e-money is ready for mainstream markets, opening up a new category of blockchain-powered payments.

New financing models

Programmable money regulated by governments enable so-called ‘smart contracts’. These can be used for many purposes, such as to generate ‘smart invoices’ – which are invoices that basically settle themselves, according to Gert Sylvest, co-founder of Tradeshift. “We see smart invoices not just as useful for lowering administrative hurdles in B2B cross-border transactions, but also for building new financing models that make it easier for enterprises to improve access to credit and improve cashflow,” he said.

Monerium received a licence to issue currencies as e-money on blockchain earlier this year. The Ikea transaction was settled in Icelandic krona, the first of several currencies Monerium will support.

Programmable financial supply chain

Stefan Arnason, CFO of Ikea Iceland, is quoted as saying, “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.”