The Reserve Bank of Australia’s pilot program has achieved a milestone with its successful international exchange transaction using eAUD, the first central bank-issued digital currency. This showcases the potential of this relatively new type of financial technology, as numerous countries worldwide consider launching their own digital currencies. Australia has been leading the way in this field, and its latest achievement is a testament to that.
The Australian electronic dollar was really used in a transaction for a stablecoin backed by the US dollar that used an Ethereum level 2 blockchain. Australia has successfully created its own first foreign exchange deal using the eAUD as part of a real-time captain for the country’s potential reserve bank electronic currency (CBDC).
It takes place in a climate of growing interest among nations all over the world to learn about or possibly introduce widely used electronic money.
Blockchain infrastructure provider Canvas said that on May 17 in real time, cryptocurrency fund managers Digital X and TAF Capital swapped eAUD for the stablecoin USD Coin (USDC).
The sale, according to Canvas, was really completed fast, which it praised as an improvement above what it called the “slow, expensive, and prone to errors” typical FX and compensation methods.
The FX industry became a part of a series of investigations that are currently being conducted as the country considers potential CBDC use cases. The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC), which uses economic research as its foundation, released the Captain system.
The study conducted by Canvas focused on the usage of eAUD in tokenized FX talks, which can point in the direction of the advantages of using the CBDC over fiat money as well as the use of current negotiating techniques.
The actual transaction took place on a decentralized application called “Connect” by Canvas, which runs on Ethereum level 2 and makes use of StarkWare’s zero-knowledge (ZK) roll-up technology.
Chief Executive Officer of Canvas David Lavecky referred to the industry as “historic” and noted that electronic money can likely address issues in the FX and compensation markets by “improving transaction times, reducing fees, and providing more open access.”
So, the ANZ banking corporation used a CBDC (central bank digital currency) to exchange carbon dioxide credit scores in a captain examination that took place in April. The CBDC was also tested for offline payments, distribution, custody, tax automation, trusted Web3 commerce, and even animal auctions. The ANZ used eAUD to support its own A$ DC stablecoin to trade the credits on a social blockchain, and the settlement process was successful.
