National Australia Bank Announced To Launch Its Own Stablecoin

Key Points:

• National Australia Bank stated that the stablecoin will be available on the Ethereum and Algorithm blockchains.
• The goal of AUDN is to allow its clients to settle blockchain transactions in real time using Australian dollars.

According to the Australian Financial Review (AFR), the National Australia Bank (NAB), one of Australia’s four largest banks, has devised a stablecoin named AUDN, which it plans to introduce in the middle of 2023.

According to the National Australia Bank (NAB), the purpose of AUDN is to give National Australia Bank’s customers the ability to settle transactions involving blockchain technology and Australian dollars in real time. According to Howard Silby, the Chief Innovation Officer of NAB, the AUDN may potentially be utilized for “carbon credit trading,” international money transfers, and repurchase agreements.

The smart contract platforms Ethereum and Algorand will both serve as launch venues for the stablecoin when it finally gets released into circulation. For the purpose of maintaining a constant value, a cryptocurrency is referred to as a “stablecoin” when its value is pegged to that of another asset class, such as a fiat currency or gold. It is said to be more cost-effective and efficient than the interbank cross-border payments service known as SWIFT. In this scenario, the AUDN will have full support from the Australian dollar, with the National Australia Bank acting as the custodian of the associated money.

The National Australia Bank (NAB) is the second major Australian financial institution after Westpac to take part in the creation of stablecoin. In the past, the Australia and New Zealand Banking Group (ANZ) worked along with the cryptocurrency custodian Fireblocks to develop a stablecoin that was tied to the Australian dollar.

Australia has implemented token mapping in order to determine the properties of all crypto tokens and how they are maintained. Additionally, Australia’s central bank has begun a pilot test in order to examine potential use cases for Australia’s own CBDC, which is expected to be completed by the middle of 2023.

A framework for the licensing and regulation of crypto service providers is going to be formed in 2023, according to a statement made by the Australian government the previous month. This was done in an effort to make crypto more secure.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Chubbi

Coincu News