In order to emphasize the role of banks in encouraging innovation in the digital economy, National Australia Bank has developed a stablecoin dubbed the AUDN that will enable its corporate clients to settle transactions using blockchain technology in real-time using Australian dollars, according to reports. AUDN is built on Ethereum and 1:1 backed by the Australian dollar.
The AUDN stablecoin is scheduled to be released somewhere around the middle of 2023, and its primary objective is to facilitate the exchange of carbon credits and cross-border remittances.
The bank stated:
“We certainly believe there are elements of blockchain technology that will form part of the future of finance. From our point of view, we see blockchain has the potential to deliver instantaneous, transparent, inclusive, financial outcomes.”
According to the bank, carbon trading presents a significant opportunity for the implementation of stablecoins. This is because stablecoins will make it possible for payments to take place on-chain or on the same platform as the transfer of carbon credits, eliminating the need to link to legacy payment networks. This results in increased trading efficiency and a decreased risk of settlement.
Despite a nightmare 2022 for the cryptocurrency sector, which culminated with the downfall of the FTX crypto exchange and the arrest of its creator Sam Bankman-Fried on accusations that may land him in jail for a century, banks continue to show interest in blockchain technology as a means of improving the architecture of financial markets.
Just two days ago, German bank N26, only recently said it will provide the cryptocurrency service to consumers in Germany, Switzerland, Belgium, Portugal, and Ireland. Banks are racing to create new kinds of digital money because they want to make use of their trusted and regulated role in the economy rather than lose ground to technological businesses.
