Commercial banks are apparently interested in stablecoins. In Australia, the National Australia Bank (NAB) just announced the upcoming launch of a stablecoin on Ethereum and Algorand. Update on this innovative design, which could be imitated.
A major Australian bank will launch a stablecoin
This Australian dollar-backed stablecoin will allow users to quickly settle transactions using the blockchain. According to the Australian Financial Review, which reported the news, the launch is scheduled for this yeartowards the summer. In particular, two uses are highlighted: the exchange of carbon credits and cross-border transfers.
The stablecoin, dubbed AUDN, will be backed by an equivalent number of Australian dollars held by the bank. Initially, the good will be available on the Ethereum network, then on Algorand. For the bank, the interest is to offer a fast payment system, which has lower volatility than other cryptocurrencies.
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Australian banks are transitioning to blockchain
National Australia Bank is not the first major bank in Australia to have a stablecoin. Its rival Australia and New Zealand Banking Group (ANZ) already created such an asset last March. It should be noted that the country’s four largest banks met at the beginning of last year to try to create a common stablecoin.
But the negotiations were unsuccessful and as a result, they are now creating unique stablecoins. In any case, the use of blockchain seems to be a milestone for the National Australia Bank. In any case, this is what the institution’s innovation manager reports:
“We certainly think there are elements of blockchain technology that will be part of the future of finance.»
The word “stablecoin” is still trendy, even if the crypto ecosystem has just experienced a particularly turbulent year. We learned earlier this week that Iran and Russia wanted to create a common gold-backed stablecoin. Further proof that this type of asset is gradually finding its place on the international scene.
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Source: Australian Financial Review
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