The launch of NAB’s Stablecoin could shake up the traditional banking industry


National Australia Bank (NAB), one of the four largest banks in Australia Australiaplans to launch a stablecoin called AUDN in mid-2023, according to Australian Financial Review (AFR). The stablecoin will be fully backed by the Australian dollar, and the money will be held by NAB.

The stablecoin will also aim to allow customers to settle transactions on blockchain technology in real time using Australian dollars. AUDN can also be used for carbon credit trading, offshore fund transfers, and repurchase agreements.

AUDN will be turned on Ethereum and the Algorand Blockchain, a smart contract platform similar to Ethereum. Stablecoins like AUDN are pegged to the asset class to help stabilize their prices, which could make them more efficient and cheaper than cross-border payment solutions between banks.

Australia’s stablecoin amid efforts to regulate the crypto industry

This is the second largest Australian bank involved in creating a stablecoin. The Australian and New Zealand Banking Group (ANZ) has partnered with the cryptocurrency custodian fireblocks To mint a stablecoin pegged to the Australian dollar called A$DC.

Australia also submitted Set the token To recognize and manage tokens, while the central bank has begun to create a Pilot test Potential use cases for CBDC. This is currently scheduled to be completed by mid-2023. The government has also promised to create a framework for licensing and regulating crypto service providers to help increase security around cryptocurrencies.

The AUDN stablecoin will be backed 1:1 by the Australian dollar. It aims to simplify cross-border remittances as well as carbon credit trading. Howard Selby, NAB’s chief innovation officer, said the decision to mint the AUDN stablecoin was based on the bank’s belief that blockchain infrastructure will play a key role in the upcoming development of finance.

“We certainly believe there are elements of blockchain technology that will form part of the future of finance…From our point of view, blockchain has the potential to deliver instantaneous, transparent, inclusive, financial outcomes.” Silby stated.

The impact of AUDN on transactions and the digital economy

AUDN’s real-time implementation of cross-border transfers could become a way for customers to bypass slower and more expensive ones Swift payment network. Moreover, AUDN has potential use cases in carbon credit trading and token transactions.

The launch of AUDN by National Australia Bank is in line with the growing interest in blockchain and stablecoins among financial institutions. It is also expected to make transactions more efficient and cost-effective and to support the growth of the digital economy. In addition, the adoption of blockchain by more banks may lead to more innovation in the field of finance.

The launch of AUDN by NAB is an important development in the financial industry. The effort falls in line with the Australian government’s efforts to regulate the crypto industry, which makes it worthy of attention, particularly in the region.



Source link

Related Posts

Precaliga