Introduction of Australian e-dollar: Australian central bank comes up with first foreign exchange transaction

• Australia’s central bank advances with digital currency eAUD
• First live transaction of eAUD successful
• Use Case Report on June 30th

Well over 100 countries around the world are currently working on developing their own central bank currency. The ECB also recently reported on the completion of a second test phase with the digital euro. Unlike cryptocurrencies such as Bitcoin, Ethereum and Co., CBDCs are coins controlled by central banks and not organized in a decentralized manner.

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Australian e-dollar: Pilot project shows success

While most CBDC projects are still in the development or testing phase, the Reserve Bank of Australia is now proposing its digital currency eAUD. The Australian e-dollar has had its first successful foreign exchange transaction, according to blockchain infrastructure provider Canvas. DigitalX and TAF Capital – both crypto fund managers – swapped eAUD for USD coin on May 17th.

The Australian CBDC pilot was carried out jointly by the Reserve Bank of Australia (RBA) and the Financial Research Institute Digital Finance Cooperative Research Center (DFCRC) between March 31 and May 31 this year.

Canvas test successful

The live transaction on May 17th was carried out via the decentralized canvas app “Connect” and executed promptly and successfully. This is a transaction on an Ethereum Layer 2 blockchain powered by StarkWare’s zero-knowledge (ZK) roll-up technology. The transaction of cyber currencies also served, among other things, to examine tokenized currency settlements.

As Cointelegraph reports, Canvas CEO David Lavecky called the transaction “historic” and highlighted the advantages of CBDCs over fiat currencies and existing settlement platforms. The digital central bank currency could bring improvements to the foreign exchange markets – for example in terms of transaction speed, fee reductions or access options. Offline payments, distribution, custody and numerous other use cases – including livestock auctions – will also be tested as part of the project.

In April, the Bank of Australia, in cooperation with ANZ Bank New Zealand, carried out a pilot test for trading in CO2 certificates. The ANZ was able to perform a near real-time transaction from eAUD to the stablecoin A$DC and trade the certificates on a public blockchain.

A report on the assessment of the different use cases is to be presented on June 30th.

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Image sources: Comdas / Shutterstock.com, Adrian Matthiassen / Shutterstock.com



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