Australia’s public bank NAB planned to launch a Crypto network supported stablecoin.
Stablecoins are fiat-pegged digital assets. In the present time, dozens of stablecoins are available in the Crypto market on different Crypto networks. To this date, USDT, USDC, and BUSD are standing at the top position in the Crypto market as the best stablecoin assets. It is a bitter reality that the majority of stablecoins are self-regulated because of unclear regulatory policies in the Crypto sector.
On 19 Jan 2023, National Australia Bank (NAB), a public bank in Australia, announced that it is about to launch a stablecoin AUDN, in sometime mid of 2023.
This stablecoin will be 100% backed by Australian dollar fiat currency in 1:1 form. It will be supported on the Ethereum network and also on the Algorand network. Both of these two blockchain networks are popular & have smart contract features. In short, this stablecoin will be available for crypto investors to use in Decentralised Finance (Defi) protocols. However, it will be early to comment on the accessibility of the stablecoin in the Defi sector but announcements by this bank are clearly showing their intention toward the Crypto sector.
The NAB’s Chief Innovation officer Howard Silby said that the primary use of this stablecoin will be a middleman role between the token-based settlement between two parties and also it will be available for Carbon credit trading.
Earlier this, four Aussie banks tried to launch stablecoin but failed because all those four banks were working separately & they failed to beat the Crypto market competition.
Stablecoins & CBDC
The origin of stablecoins in the Crypto market emerged as a new concept for the Central Banks to work on the Central Bank Digital Currency (CBDCs).
At present, more than 100 Central Banks are working & studying CBDC. The majority of the banks are thinking that they may face big risks with CBDC adoption because CBDC will eliminate the majority of the role of the Central Bank. On the other hand, few countries thinks high centralised nature of CBDC will make the payment system better without any huge risk.
Read also: DCG reportedly planning to sell its media outlet “Coindesk”
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
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