Sygnum, a digital assets bank in Switzerland announced in a release that it enabled the world’s first e-commerce transaction that involved using a stable coin. The transaction took place on the shopping site Galaxus which is one of the biggest retailers in Switzerland. The stablecoin which is known as DCHF or Digital Swiss Franc was developed by Sygnum.
📣Announcement: @coinify & @Galaxus enable world’s first e-commerce payment using Sygnum Bank #DCHF stablecoin. The Sygnum Digital Swiss Franc (DCHF), pegged 1:1 with the Swiss Franc, eliminates the need for card systems, reduces costs & fraud, & processes real-time transactions.
— Sygnum Bank (@sygnumofficial) August 27, 2020
The DCHF stablecoin is pegged one-to-one with the Swiss Franc. Moreover, the electronic commerce transaction was authorized by Coinify, a cryptocurrency payment processor based in Denmark.
According to Sygnum Bank, the DCHF stable coin eliminates the need for card systems, reduced costs and fraud, and processed real-time transactions.
Sygnum’s company statement said that the stablecoin transaction was a seamless connection between the digital and traditional economies. The transaction was a step to “forge direct connections” between consumers and online retailers. The Bank also saw a potential to “revolutionize the e-commerce industry” which is worth about $3.5 trillion, according to the statement.
Furthermore, Galaxus’ Chief Financial Officer, Thomas Fugmann said that the online retailer strengthened its position as an e-commerce pioneer by accepting cryptocurrencies in payment as early as 2019.
So far, using crypto as a means of payment is only available in the retailer’s online shop. As of press time, the payment page for Galaxus stated that paying with a cryptocurrency is supported by Coinify alone. Coinify charges a conversion rate of 1.5%. Meanwhile, Sygnum’s website claimed that the Bank was the world’s first digital assets bank and also the first to acquire a license and issue its stablecoin.