Australia Joins Stablecoins On The Ethereum And Algorand Networks

Australia is ready to launch stablecoins using the Ethereum and Algorand blockchains. (Photo; Doc. Bitcoin Exchange Guide)

JAKARTA Australia plans to launch a stablecoin cryptocurrency using the Ethereum and Algorand blockchains. The National Australia Bank (NAB) sees great potential for the role of blockchain in financial evolution in the near future.

It is planned that the stablecoin will be supported by 1:1 by the Australian dollar (AUD). This was conveyed by the Head of NAB Innovation, Howard Silby in a statement. For information, NAB has been preparing to launch the stablecoin AUDN in the middle of this year as an Australian Financial Review (AFR) report.

The National Australia Bank (NAB) will be Australia's second "Big 4" bank to introduce stablecoins in Australian dollars on the Ethereum Network. NAB's head of innovation, Howard Silby, stated that the decision to print an AUDN stablecoin was based on the bank's belief that blockchain infrastructure would play an important role in its new financial evolution.

The idea of AUDN is to allow customers to complete money transfers to blockchain technology in real-time using the Australian Dollar. AUDN also has prospects for use for other activities such as carbon credit trading, money transfers abroad, and so on.

The stablecoin will launch on the Ethereum and Algorand blockchains, which are leading and environmentally friendly smart contracts platforms. The implementation of AUDN for real-time cross-border remittances can be a convenient way for customers to be an alternative to a boring and expensive SWIFT payment network.

Silby also stated that the company plans to provide stablecoins in several different currencies that have bank authorization. The announcement of the release of the AUDN stablecoin by NAB comes nine months after rival Australia and New Zealand Banking Group (ANZ), introduced its thirty million stablecoin tokens, which can also be used for international remittances and carbon trading.

For information, stablecoins are a type of cryptocurrency whose value is tied to other classes of assets, such as fiat or gold currencies, to stabilize the exchange rate. Stablecoins are assumed to be more effective and cheaper than SWIFT's interbank cross-border payment solution.

It doesn't stop there, to strengthen its role in stablecoins, ANZ and NAB are also working with other leading banks, Commonwealth Bank of Australia and Westpac. Even so, these efforts were not so successful as each bank had different strategies in relation to the launch of a stablecoin supported by the Australian dollar.