Tradeshift, Monerium Enable eMoney Invoice Settlement

Tradeshift made further inroads into blockchain technology via a new collaboration with Monerium, which saw a B2B invoice settled using the Tradeshift platform and eMoney on the Etherium blockchain, according to a press release.

The companies claimed on Tuesday (Oct. 1) that the transaction was the first time an invoice had been settled using licensed digital cash. The deal involved Iceland-based retailer Nordic Store’s procurement of goods from IKEA Iceland; the retailer used Tradeshift to make the purchase and initiate the transaction, which was settled using smart contracts and digital cash operated by Monerium.

In a statement, Gert Sylvest, Tradeshift co-founder and GM of the firm’s digital incubation unit Tradeshift Frontiers, said the transaction demonstrates the potential for compliant eMoney (digital fiat currency) to gain traction in B2B payments.

“Programmable money regulated by governments will become the foundation for eCommerce payments because they enable so-called ‘smart contracts,'” he said. “Smart contracts have may use cases. For example, they can be used to generate ‘smart invoices,’ which are invoices that basically settle themselves.

“We see smart invoices not just as useful for lowering administrative hurdles in business-to-business cross-border transactions, but for building new financing models that [make] it easier for enterprises to improve access to credit and improved cash flow,” Sylvest continued. “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.”

Iceland-based Monerium received a license to issue eMoney on blockchain earlier this year. The license enables the company to move eMoney across borders without an intermediary, such as a traditional bank. The company will initially support the Icelandic krona, but plans to add support for additional currencies moving forward.

“As the first company authorized to issue eMoney on blockchains, we are delighted to demonstrate the benefits of blockchains for mainstream B2B transactions using a legal form of digital money,” said Monerium Co-founder Sveinn Valfells in another statement. “Unlike cryptocurrency, which is volatile, eMoney is a proven digital alternative to cash, regulated and redeemable on-demand. Using programmable eMoney in smart contracts heralds a new category of payments.”