According to a report in the Australian Financial Review (AFR), one of the four largest Australian banks, the National Australia Bank (NAB), has developed a stablecoin dubbed AUDN that it intends to introduce in the middle of 2023.
According to National Australia Bank, the aim of AUDN would be to enable its users to settle transactions in real-time utilizing Australian dollars via blockchain technology. According to Howard Silby, Chief Innovation Officer at NAB, “carbon credit trading, international money transfers, and repurchase agreements” are just a few further uses for AUDN.
The stablecoin will launch on the Ethereum and Algorand blockchain, a smart contract platform similar to Ethereum.
Stablecoins, which are viewed as more effective and less expensive than the interbank cross-border payments system SWIFT, are a sort of cryptocurrency whose value is tethered to another asset class, such a fiat currency or gold, to stabilize its price. In this scenario, the NAB will hold the currency and the AUDN will be completely guaranteed by the Australian dollar.
National Australia Bank Joins the CBDC Train
The second significant Australian bank to participate in the development of a stablecoin is NAB. A stablecoin tied to the Australian dollar was previously created by the Australia and New Zealand Banking Group (ANZ) in collaboration with cryptocurrency custodian Fireblocks.
Australia’s central bank has begun a pilot test to examine possible use cases for Australia’s own CBDC, which is anticipated to be finished by mid-2023. Australia has adopted token mapping to identify features of all crypto tokens and how they are maintained.
In an effort to tighten safety around crypto, the Australian government promised last month to establish a framework for the licensing and regulation of crypto service providers in 2023.