Monerium: Europe's Hybrid Digital Currency


On the same day as our posting on Industrial E-Payments, news arrived from Europe of a use-case: the world's first smart contract invoice paid with digital currency:

Monerium
Monerium is an Icelandic digital currency (specifically e-money, the electronic form of notes and coins eg the balances in cashcards, ewallets and bank accounts) that is licensed by Iceland and usable in the EU (the first such EU digital currency). Characteristics:
  • Fiat Based: Being fiat-based and fiat-like, it works with established protocols with less need for businesses and regulators to grasp exotic, new currencies. Allows the re-use of existing regulations, contracts, and procedures. Initially issued in Icelandic kr√≥na, it is designed to adapt to any national currency.
  • Blockchain Based Though a fiat currency, being blockhain enabled, it provides for smart contracts, bankless operations (the wallet is the bank), tokenisation, auto-reconciliation and cross-border payments. Currently running on Ethereum, it is intended to be operable with Corda, Hyperledger, Liquid, Stellar, Ripple.
  • Fiat Backed Backed by deposits of the currency it is issued in. Being national fiat-centric Monerium could be employed as a central bank digital currency equivalent for countries whose central banks do not wish to build one themselves.

Tradeshift
Tradeshift is a Danish-US, multi-award winning, app-driven, e-invoicing platform which encompasses invoicing, payments, working capital and marketplaces. Characteristics:
  • E-invoicing: Purchases and payments on one common platform for buyers and suppliers: no paper, no PDFs.
  • Blockchain: Smart contracts are available. Payment is automatic upon invoicing, no extending of payment duration at the discretion of the buyer. Conversely, suppliers are obligated to deliver on time and on specification. Allows the (pro-forma) invoice to be tokenised and used for financing: banks or factoring firms can be assured invoices are liquid, legit and not re-used for multiple financing.
  • Security: Eliminate or reduce the risk of mis-billing, over or under payment, payment to erroneous parties. Tradeshift also offers virtual credit cards for managing minor and one-off purchases.