Commercial banks are apparently interested in stablecoins. In Australia, the National Australia Bank (NAB) has just announced the upcoming launch of a stablecoin on Ethereum and Algorand. Update on this innovative project, which could be imitated.
A major Australian bank will launch a stablecoin
This Australian dollar-backed stablecoin will allow users to settle transactions quickly using the blockchain. According to the Australian Financial Review, which reported the news, the launch is planned for this year, around summer. Two uses are highlighted in particular: 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 asset will be available on the Ethereum network, then on Algorand. For the bank, the interest is to offer a fast payment system, which has less volatility than other cryptocurrencies.
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Australian banks are turning to blockchain
The 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 an asset of this type last March. It must be said that the four largest banks in the country met at the beginning of last year to try to create a common stablecoin.
But the negotiations had not been successful, and as a result, these are now creating unique stablecoins. In any case, the use of the blockchain seems to be a milestone for National Australia Bank. In any case, this is what the head of innovation of the institution reports:
“We certainly think there are elements of blockchain technology who will be part of the future of finance.»
The word “stablecoin” is in any case in fashion, even though the crypto ecosystem has just experienced a particularly turbulent year. We thus learned at the beginning of the week that Iran and Russia wanted to create a common stablecoin backed by gold. 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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