Australia launches stablecoin

[tabas]

I guess that many will not like it but Australia launches their stable coin backed by Australian Dollars. There goes the CBDC from other countries like China and this seems is going to be the source of the money that shall flow for the next bull run and this trend might continue for next years.

The National Australia Bank (NAB), one of the four biggest Australian banks, has created a stablecoin called AUDN, which it aims to launch in the middle of 2023, according to the Australian Financial Review (AFR) report.

The purpose of AUDN would be to allow its customers to settle transactions on blockchain technology in real time using Australian dollars, NAB said. AUDN could also be used for several other purposes including "carbon credit trading, overseas money transfers and repurchase agreements," NAB’s Chief Innovation officer Howard Silby told AFR.

The stablecoin will launch on the Ethereum and Algorand blockchains, the latter a smart contract platform similar to Ethereum.
[..]

For the full article, please read the source:
National Australia Bank Becomes Second Australian Bank to Build Stablecoin: Report

[cryptoaddictchie]

So it did started already. I think many will follow through like the planned of other countries. Many have already line up their own CBDC and yet to implement. China started it and maybe this will be the new trigger foe crypto to be active again. The big guys are probably talking now and what would be the market trend for the next few years. Break this recession or what.

[Cee2]

Stablecoins will naturally progress to be backed by more than just the word of any government.

History has shown us with no exceptions that governments will all eventually collapse.

I see the evolution in the direction of stablecoins backed by physical assets such as gemstones/precious metal etc. In a trustless manner.

I would encourage you to read up on a project that tries to tackle this with scanning of objects called 3DPass which I’m proud to have joined after the official ANN thread https://bitcointalk.org/index.php?topic=5382009.0

Feel free to checkout my Twitter: https://twitter.com/A_mo1111_

[hugeblack]

I do not know how reliable this news is, but it does not refer to the Central Bank of Australia (or whatever its name is), but rather the National Australia Bank, which is one of the largest banks in the country, and therefore the government has nothing to do with this news.
I also do not think that a country should build a stable currency on a network that it does not control and therefore may not have control over transactions, in addition to the need for citizens to buy Ethereum for gas costs.

The purpose of AUDN would be to allow its customers to settle transactions on blockchain technology in real time using Australian dollars, NAB said. AUDN could also be used for several other purposes including "carbon credit trading, overseas money transfers and repurchase agreements," NAB’s Chief Innovation officer Howard Silby told AFR.

They seem to be closer to USDT, USDB.

[JeromeTash]

I also do not think that a country should build a stable currency on a network that it does not control and therefore may not have control over transactions, in addition to the need for citizens to buy Ethereum for gas costs.

Yeah, this is obvious. No government wants to lose out on the Financial grip and if CBDCs are to be introduced under any blockchain architecture, the Governments will create their own which they feel they can control and manipulate. Like the fee, taxation, tracking, freezing transactions and addresses, controlling money in circulation etc.

You are right, the bank is probably acting on their own and not as the Australian Government. I am not sure what kind of legal processes they went through to have this approved, though given the Australian Government can get bitchy sometimes towards crypto.

[ethereumhunter]

Each country's financial situation will change this year with Australia starting it. Launching its stablecoin can trigger other countries to follow suit and of course, they will get support from their country's currency such as Australia. Blockchain technology will finally develop with the participation of every government by creating stablecoins so that the government will give permission to its citizens to use crypto in full. But maybe it is still too early for other countries and they still need to research if they want to use blockchain to create their stablecoin.

[tvplus006]

I guess that many will not like it but Australia launches their stable coin backed by Australian Dollars. There goes the CBDC from other countries like China and this seems is going to be the source of the money that shall flow for the next bull run and this trend might continue for next years...

I think you don't quite understand the meaning and functions of stablecoins and CBDC correctly. The stablecoin, which is issued by the National Bank of Australia, is issued to facilitate payment transactions for its customers and its subsequent exchange for fiat currency and is currently a common banking instrument that has nothing to do with CBDC.

[Jackl87]

I guess that many will not like it but Australia launches their stable coin backed by Australian Dollars. There goes the CBDC from other countries like China and this seems is going to be the source of the money that shall flow for the next bull run and this trend might continue for next years.

I am not really sure what to think about this news because i don't know if this is a good thing or not for the crypto market. So Australia now also has a digital version of their Australian Dollar. This basically also means, that if for example 1 Billion digital Australian dollars will be minted and put into circulation, that 1 Billion "normal" Australian dollars would need to be removed from circulation or otherwise that newly printed money would just generate additional inflation.
Also i am not really sure if such CBDC are really a reason or a source for a next bull run of the crypto market. For me their are just digital versions of native national tokens nothing more.

[o48o]

But this isn't really CBDC, just a stable coin. I am guessing that's a pilot program and fails on the fact that it's on open blockchain and to fact that transactions aren't instant and front running creates problems. I am not sure about laws in Australia, but interests for confidential transactions and privacy should be same as in EU. Maybe this works for some specific use cases but it isn't really government adopting CBCD.

[btc_angela]

In any case though, it's not that it will hurt crypto in general with their launch.

As someone says, it will just facilitates transactions with the banks and it could be more quick with their own stablecoins. So nothing spectacular here, and I don't see it as something that could push the price of any crypto for that matter.

And this could be the norm for other countries, CBCD's or any other crypto issues by their government or banks.

[vv181]

Besides what others pointed out about the wrongly assumed token creator of a governmental entity, the interesting point within the article is the inefficiency of the current cross-border payment solutions.

With that in mind, it should endorse more research toward blockchain technologies, so it is just not merely a consideration as what currently the article suggests. That might be a hopeful technological advancement and progress if blockchain could be utilized to improve the current system. No matter whether it will be implemented in the token form or directly within A CBDC system, it should address the current lack of innovation within the nowadays centralized payment system.

[hd49728]

You are speading misinformation. A stable coin is launched by one of four biggest banks in Australia is not an official stable coin of that nation. It is not Australia launches stable coin, very misleading.

It is like a company like Tether or Binance launches their stable coin but I see a point that this one is launched by one of biggest banks in Australia. It means something but does not means that Australian government will officially launch their own CBDC.

Something to know about CBDCs.
[GUIDE] All About Central Bank Digital Currency (CBDC)
Bitcoin vs CBDC - Print your own stickers

[klidex]

In any case though, it's not that it will hurt crypto in general with their launch.

As someone says, it will just facilitates transactions with the banks and it could be more quick with their own stablecoins. So nothing spectacular here, and I don't see it as something that could push the price of any crypto for that matter.

And this could be the norm for other countries, CBCD's or any other crypto issues by their government or banks.

Yes, crypto cannot be balanced just because there is a country that creates and launches a stable coin.
The coin was created only because of a personal interest in that country and it is impossible to compete with crypto coins that are already on the market.
So why are we thinking and imagining about Australia having a stable coin slide if indeed the coin is unlikely to be able to influence cryptocurrencies.

[noorman0]

More than the aim of facilitating the transfer of funds in real-time and so on, it seems that the "business" of stable coins has become a trend of competition between banks in the country to grab the attention of the crypto community. I read some articles and found this:


Somewhat surprised to see the number of AUD's stable coins growing rapidly, NAB is the second AUD stable coin of this type of banking institution to have regulatory backing.

[hugeblack]

It is like a company like Tether or Binance launches their stable coin but I see a point that this one is launched by one of biggest banks in Australia. It means something but does not means that Australian government will officially launch their own CBDC.

What surprised him was how did the regulators allow a bank to engage in such economic activities? I can understand, for example, a company like Tether and Binance, but a bank? In general, let's see if the currency will gain blind trust, as happened with Luna, or will they need more time? Will they print money out of nowhere, or will they be more careful ( 1:1 USD)?

[fenixosup]

Still don't understand will CBDC really give new opportunity for tracking money or not. They already can track any bank transfer and card transaction

[Bitstar_coin]

Out of the few countries that already officially launched their CBDC, which among them has been reported successful in the aspect of usage by the citizens of the country?
I haven't seen any data so far critically analyzing the success of CBDC so far, and I think that is what other countries who are ye to launch it should look at before taking any step. If no one is interested in it, what is the point of the government wasting time and funds (if included) to launch it?

[dothebeats]

It was always just a matter of time anyway. CBDCs will start to be more and more prevalent as we slowly transition to a highly digitized world. China and Australia making their first moves mean that they already have a working knowledge of what to do with it and how to control it in the event of a failure. The main question for these countries who launched and are planning to launch CBDCs is this: how comfortable would the masses be in using what their governments issued that essentially replaces their money? It'll be a slow transition and a lot of pushback from the masses, but it is the inevitability of finance.

[Xal0lex]

The bad thing about this news is that they chose Ethereum blockchain for the coin, which is not the best option because of the huge commissions. Paying $4-5 for a transfer on exchanges is not for everyone. Although blockchain Algorand is offered as an alternative, but it is not as common. It would be better if they focused on TRON or the increasingly popular Polygon. It is more transfer-friendly than Ethereum.

[tvplus006]

It is like a company like Tether or Binance launches their stable coin but I see a point that this one is launched by one of biggest banks in Australia. It means something but does not means that Australian government will officially launch their own CBDC.

What surprised him was how did the regulators allow a bank to engage in such economic activities? I can understand, for example, a company like Tether and Binance, but a bank? In general, let's see if the currency will gain blind trust, as happened with Luna, or will they need more time? Will they print money out of nowhere, or will they be more careful ( 1:1 USD)?

This decision was made with great delay, while the use of stablecoins by banks today is a widespread banking tool. As for America, on January 5, 2021, the US Treasury issued permission to banks to issue their own stablecoins - https://twitter.com/USOCC/status/1346276615966232579 Thus , the new rules equate public blockchains with the SWIFT system , the head of Circle, Jeremy Alter , said in a statement - https://twitter.com/jerallaire/status/1346233134002659330.