Given recent reluctance and more recent implosion of Terra, other nations have been intending to investigate stablecoins. One of Australia’s four main financial institutions, the National Australia Bank (NAB), is the most recent to join the bandwagon.
The Ethereum and Algorand blockchain networks will soon host the NAB-created AUDN stablecoin, which is tethered to the Australian dollar. By the middle of 2023, completion is anticipated.
The AUDN would allow users to settle transactions on blockchain technology in real-time using Australian dollars, according to a report from the Australian Financial Review (AFR). According to the NAB, the stablecoin is intended to be used for a variety of tasks, including the trade of carbon credits, international money transfers, and repurchase agreements. The bank will also be in charge of keeping the Australian stablecoin backed by currency.
NAB Chief Innovation Officer Howard Silby was cited as stating in a release,
“We certainly believe there are elements of blockchain technology that will form part of the future of finance […] From our point of view, we see [blockchain] has the potential to deliver instantaneous, transparent, inclusive, financial outcomes.”
The SWIFT network, an antiquated system, dominates the existing infrastructure for international transactions. However, many users may find the launch of AUDN to be a worthwhile substitute.
The change occurs four months after Australian Senator Andrew Bragg introduced a bill attempting to strictly regulate the domestic bitcoin market. The measure mandated that stablecoin issuers and exchanges for digital assets report to authorities about their business practices. It also targeted Chinese banks operating in the nation that deal with digital yuan.
NAB has launched AUDN, an Australian dollar-pegged stablecoin on the Ethereum network, making it the second major bank in the nation to do so. In partnership with cryptocurrency custodian Fireblocks, Australia and New Zealand Banking Group (ANZ) created a stablecoin that was tethered to the Australian dollar last year.
Russia and Iran reportedly discussed the introduction of a new cryptocurrency backed by gold this week. The token would be produced as a stablecoin, according to Alexander Brazhnikov, executive director of the Russian Association of the Crypto Industry and Blockchain.
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