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NAB chief innovation officer Howard Silby said the decision to mint the AUDN stablecoin, which is backed 1:1 by the Australian dollar (AUD), was based on the bank’s belief that blockchain infrastructure will play a key role in the new evolution of finance.
The National Australia Bank (NAB), one of the central banks in Australia, has launched a stablecoin named AUDN. The stablecoin is all set to be launched in the middle of this year, according to the Australian Financial Review (AFR) report.
NAB will go on to become the second “Big 4” Australian Bank to introduce an Australian dollar-puffed stablecoin on the Ethereum Network. NAB chief innovation officer Howard Silby previously stated that the decision to mint the AUDC stablecoin, which is supported by the Australian dollar (AUD) was made on the bank’s conviction that blockchain establishment will play an important role in the next evolution of Finance.
NAB chief innovation officer Howard Silby said the decision to mint the AUDN stablecoin – which is backed 1:1 by the Australian dollar (AUD) – was based on the bank’s belief that blockchain infrastructure will play a key role in the new evolution of finance.
According to Silby, the idea of AUDN is to enable customers to resolve money transfers on Blockchain Technology in real-time using Australian Dollars. AUDN also has the prospect of being used for other activities like carbon credit trading, overseas money transfers, etc. The stablecoin will be launched on the Ethereum and Algorand blockchains, which is a small contract platform.
The application of AUDN for real-time cross-border remittances could become a convenient way for customers to avoid the tedious and expensive SWIFT payment network. Carbon credit trading and other forms of tokenized real-world assets will be a significant use case for the AUDN, according to Silby. He also stated that the company was planning to deliver stablecoins in several different currencies for which the bank possesses authorization.
NAB’s disclosure of the AUDN comes nine months after rival Australia and New Zealand Banking Group (ANZ) introduced thirty million tokens of its stablecoin, which can also be used for international remittances and carbon trading.
A stablecoin is a kind of cryptocurrency whose value is attached to another asset class, such as a fiat currency or gold, to stabilize the rate. It is assumed to be more effective and less expensive than the interbank cross-border payments solutions SWIFT.
Before the launch of ANZ and NAB’s stablecoin ventures, the two banks also decided on collaborating with the other two “Big Four” in Australian banks- Commonwealth Bank of Australia and Westpac, to co-launch a pan-Australia stablecoin supported by the AUD. However, it wasn’t very successful because of competition issues and the banks being at different levels in their adoption and strategy.