Australia has successfully conducted its first forex transaction using the eAUD as part of a pilot project for the country’s potential central bank digital currency.
This comes amid growing interest from countries around the world to learn about or launch central bank-issued digital currencies.
The blockchain infrastructure provider Canvas said that on May 17, cryptocurrency fund managers DigitalX and TAF Capital traded eAUD against stablecoin USD Coin (USDC).
Canvas reported that the transaction was settled instantly, calling it a success against traditional FX and remittance networks.which he called “slow, expensive and prone to errors”.
The forex operation was part of a series of tests being carried out as the country explores potential use cases for a CBDC. The pilot program was launched by the Reserve Bank of Australia (RBA) together with the Digital Finance Cooperative Research Center (DFCRC).
The Canvas test explored the use of eAUD in tokenized currency settlements, which could point to the advantages of using CBDCs over existing fiat currencies and settlement platforms.
We’ll demonstrate the benefits of using CBDCs like eAUD in tokenized FX transactions using our privacy-focused Layer 2 Network and blockchain-based financial markets applications. Read more here https://t.co/RPjSF5B8s0
— CANVAS (@canvas_defi) March 6, 2023
We will demonstrate the advantages of using CBDCs such as eAUD in tokenized currency transactions using our privacy-focused Layer 2 network and blockchain-based financial markets applications. More information here
The transaction was made in a decentralized application in Canvas “Connect”, an Ethereum layer 2 using StarkWare’s Zero Knowledge (ZK) technology.
Canvas CEO David Lavecky called the deal “historic” and added that the digital dollar could potentially address challenges in the foreign exchange and remittance markets, such as “improve transaction times, reduce fees and provide more open access.”
A pilot test conducted in April by the Australia and New Zealand (ANZ) bank used the CBDC to trade carbon credits.
ANZ used eAUD as backing for its A$DC stablecoin to trade the credits on a public blockchain, and reported that the settlement occurred “near real time.”
Other use cases being tested are offline payments, distribution, custody, tax automation, use in “trusted Web3 commerce” and even cattle auctions.
The pilot project began on March 31 and will end on May 31. On June 30, a report will be published in which the different use cases will be evaluated.
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