Recently, IKEA Iceland successfully made an invoice on Ethereum (ETH) blockchain tech, by allowing payments from a local merchant in electronic cash. The monetary payment was conducted in the best interests of Nordic Store by means of encoded smart contracts.
According to reports from those familiar with the matter, this financial transaction was expedited by Tradeshift, an American supply chain payments and blockchain firm. Financial technology firm Monerium participated as a middleman to provide the electronic form of Icelandic króna on ETH distributed ledger technology (DLT).
The transaction using DLT was imaginable amid a statute legally approved by Iceland earlier in 2019 to launch the country’s own computerized form of their fiat currency for circulation specifically inside Europe.
The authorities and corporations sanctioned to issue computerized money on DLTs networks, will try hard to exhibit the pros of distributed ledger technologies for typical business to business (B2B) transactions while utilizing a legitimate and aboveboard variety of digital money.
While digital coinage has been in existence for a good period of time within the European Economic Area (EEA), making and settling invoices in electronic fiat using smart contracts is an innovation that is still new. However, the public especially traders believe this will help to speed up international payments even outside the EEA.
Different from Bitcoin and other popular cryptocurrencies whose value are volatile in nature, e-cash is an established electronic and computerized option to cash, delimited and exchangeable on demand. By means of programmable digital cash in blockchain signs a novel class of financial payments.
After the blockchain-powered transaction, the firms are further demonstrated that the digital money controlled by the central authorities is now prepared for conventional acceptance and adoption. According to Stefán Árnason, CFO of IKEA, coded financial supply chain, where traders can easily associate with each other by connecting information flows to monetary flows via groundbreaking financial technologies, will play an important role to transform the interaction between distributors and consumers.