The NAB Becomes The Second Bank To Develop Stablecoins In Australia
The National Australia Bank (NAB) has developed a stablecoin (AUDN) with plans to launch soon. The media house in charge of reporting business and economic affairs in Australia – AFR, announced that the new digital asset is scheduled to be launched around June 2023.
The National Australia Bank developed the AUDN to allow its customers to make payments with blockchain technology. Part of the plan is to make AUDN useful to make borderless payments seamlessly.
A top-level executive of the bank – Howard Sibly, confirmed that the stablecoin would be launched on the Blockchain of Ethereum and Algorand. Stablecoins are digital assets whose values are tied to the exact value of a fiat currency.
Therefore, the value of the recently developed AUDN will always be equivalent to that of the fiat currency Australian Dollar (AUD). This will ensure that the AUDN has a relatively stable value and will not be subject to volatile crypto market conditions.
The National Bank of Australia is not the first to develop a crypto asset with values tied to the Australian dollar. Before the development of the AUDN, Australian multinational banking and financial service provider – the Australian and New Zealand Banking Group collaborated with digital asset custodian – Fireblocks to launch their stablecoin, which is also pegged to the AUD.
Australia’s CBDC Progress
Meanwhile, Australia’s central bank has organized a pilot test to examine possible advantages that the economy will benefit from an Australian-owned CBDC. The pilot test will be completed around June 2023.
The government of Australia plans to develop and launch a reliable framework to regulate digital asset companies in Australia and reduce the possibility of security violations on digital assets. As traditional financial institutions plan to launch their stablecoins, some private blockchains are doing the same.
One such blockchain is Cardano, whose stablecoin launch is now at an advanced stage, according to an announcement from Cardano’s IOG team, the developers behind the stablecoin project.
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