This Nation’s National Bank Is Issuing Its Own Stablecoin!

According to the Australian Financial Review (AFR) report, it is one of the four largest banks in Australia. National Bank of Australia (NAB)which it aims to launch in the middle of 2023 AUDN created a stablecoin named

National Bank of Australia Becomes Second Australian Bank to Issue Stablecoin

stablecoin, Ethereum and will be released on the Algorand blockchain.

NAB said that the aim of AUDN will be to enable its customers to perform transactions on blockchain technology in real time using Australian dollars.

Howard Silby, NAB’s Director of Innovation, told AFR that AUDN could also be used for other purposes, such as “crypto credit trading, overseas money transfers and repurchase agreements.”

The stablecoin will be launched on the Ethereum and Algorand blockchain, a smart contract platform similar to Ethereum.

“Stablecoin” is a type of cryptocurrency whose value is pegged to another asset class, such as fiat currency or gold, to stabilize its price, and is considered to be more efficient and cheaper than the interbank cross-border payment solution SWIFT.

In this case, AUDN will be fully backed by the Australian dollar and the currency will be held by the NAB.

NAB has become the second largest Australian bank involved in the creation of a stablecoin. Previously, the Australia and New Zealand Banking Group (ANZ) collaborated with crypto custodian Fireblocks to issue a stablecoin pegged to the Australian dollar.

Australia has launched token mapping to determine the characteristics of all crypto tokens and how they are managed.

The central bank has launched a pilot test expected to be completed by mid-2023 to explore potential use cases for Australia’s own CBDC.

In an effort to tighten security around crypto, the Australian government last month promised to create a framework for licensing and regulating crypto service providers by 2023.

*Not investment advice.