The coin is set to launch on the Ethereum and Algorand blockchain platforms in 2023. The stablecoin aims to allow customers to settle transactions using Australian dollars on blockchain technology in real time.
AUDN Stablecoin to be used for Carbon Credit Trading and Overseas Money Transfers
In addition to real-time transactions, AUDN can also be used for other purposes, such as carbon credit trading, overseas money transfers, and repurchase agreements, according to NAB's Chief Innovation officer Howard Silby.
A stablecoin is a type of cryptocurrency whose value is pegged to another asset class, such as a fiat currency, making it more efficient and cheaper than traditional interbank cross-border payment solutions.
National Australia Bank Second Major Australian Bank to Develop Stablecoin
National Australia Bank is the second major Australian bank to develop a stablecoin. Earlier, Australia and New Zealand Banking Group (ANZ) teamed up with crypto custodian Fireblocks to mint a stablecoin pegged to the Australian dollar.
The Australian government has also introduced token mapping to identify the characteristics of all crypto tokens and how they are managed. Its central bank has started a pilot test to explore potential use cases for Australia's own CBDC, which is expected to be completed by mid-2023.
