Jan 19, 2023 09:07 UTC
| Updated:
Jan 19, 2023 at 09:07 UTC
This marks the alternate” Big 4″ bank in Australia to launch an Australian- dollar pegged stablecoin in a shot to boost the digital economy.
National Australia Bank( NAB) is set to become the alternate “ Big 4 ” Australian bank to launch an Australian bone – pegged stablecoin on the Ethereum network.
Set to launch eventually in mid-2023, the AUDN stablecoin is aimed at streamlining cross-border remittances and carbon credit trading, according to aJan. 18 report from the Australian Financial Review( AFR).
NAB’s principal invention officer Howard Silby said the decision to mint the AUDN stablecoin on Ethereum which is backed 1:1 by the Australian Dollar( AUD) — was grounded on their belief that blockchain structure will play a crucial part in the coming elaboration of finance
We clearly believe there are rudiments of blockchain technology that will form part of the future of finance(.) From our point of view, we see( blockchain) has the implicit ability to deliver immediate, transparent, inclusive, fiscal issues. ”
The perpetration of AUDN for real- time,cross-border remittances could be a way for guests to sidestep the slower and more expensive SWIFT payment network.
Carbon credit trading and other forms of tokenized real- world means will also be a major use case for the AUDN, Silby said. He also added that they “are planning to offer stablecoins in “ multiple currencies ” where the bank has licenses.
NAB’s advertisement of the AUDN comes nine months after rival bank Australia and New Zealand Banking Group( ANZ) launched 30 million commemoratives of its own stablecoin tickeredA$ DC in March 2022, which is also used for transnational remittances and carbon trading.
Previous to ANZ and NAB’s stablecoin systems, the two banks originally planned on teaming up with the other two “ Big 4 ” Australian banks Commonwealth Bank of Australia( CBA) and Westpac — toco-launch a civil stablecoin backed by the AUD.
Still, it failed due to competition enterprises and the banks being at different stages in their relinquishment and strategy, the AFR explained.
Jonathon Miller, Australia’s managing director of crypto exchange Kraken Australia told Cointelegraph that banks are beginning to admit the specialized advantages that blockchain structure offers over traditional heritage systems
“ The patient relinquishment of crypto technology by fiscal institutions like ANZ and now NAB for its eventuality to produce a significant edge in the fiscal system(.) is an unequivocal recognition of( blockchain’s) competitive advantage over traditional payment systems. ”
“ We anticipate this trend to continue, inescapably evolving to include the relinquishment of colorful other cryptocurrencies and commemoratives for adding use cases in the Australian frugality, ” he added.
It also remains to be seen how these private bank- issued stablecoins would work in tandem with the Reserve Bank of Australia’s eAUD — a central bank digital currency( CBDC) — which is presently in its pilot phase.
Still, NAB is confident the two will be suitable to operate contemporaneously and have their own set of unique use cases.
