- Australia’s first stablecoin will launch transactions by mid-year for all businesses and individuals
- The Australian dollar has a strong presence in the traditional market: 1 USD = 1.428459 AUD
- The stablecoin will be used to perform daily life transactions, carbon credit trading, and remittances.
- The token contributes to the mass adoption of the digital economy.
National Australia Bank has officially launched its Australian dollar-backed stablecoin called AUDN on Ethereum and Algorand blockchain, AFR reports.
It will allow citizens to make business transactions using AUDN and stimulate the digital economy.
A stablecoin is a virtual token pegged against the dollar. The Australian dollar is a powerful fiat currency due to its global market dominance.
Caption: National Australia Bank launches AUD-backed stablecoin Source: SME finance forum
With the upcoming stablecoin, Australians can easily convert their funds into stablecoins and perform transactions on the blockchain. The local banks will now become part of the digital economy, which the country seems to be aiming at.
Before NAB, four domestic banks tried to work together to launch a stablecoin but failed to do so. Now, the national bank is stepping forward for the development of a virtual economy using AUD.
According to the source, the fiat currency will be held by the bank while the AUDN will operate on blockchains for transactions, carbon credit trading, and remittances.
AUDN will also enable green deposits and bond market repurchase agreements by regulating as a settlement token.
“We certainly believe there are elements of blockchain technology that will form part of the future of finance,” said NAB Chief Innovation Officer, Howard Silby.
“We see [blockchain] has the potential to deliver instantaneous, transparent, inclusive, financial outcomes.”
So far, Australia is the only country to launch its own stablecoin. Recently, Japan removed the ban on stablecoins