The future of blockchain in Australia looks promising as the National Australia Bank Limited (NAB), a locally-owned public company becomes the second bank after ANZ to issue a stablecoin called AUDN, which is pegged to the Australian dollar.
A news report from the Australian Financial Review states that the AUDN is expected to be launched for payment transactions by the middle of 2023. The AUDN is designed to enable users to complete blockchain-based payments, repurchase agreements, settlement token transactions, and low-cost worldwide money transfers.
Additionally, The AUDN will also concentrate on carbon credits in order to increase trade efficiency and lower any hidden risks related to settlements. However, the AUDN will not trade on crypto exchanges but is designed for specific applications.
Howard Silby, NAB’s Chief Innovation Officer stated that the bank believes blockchain will play a role in the future of banking because the technology has the potential to generate quick, transparent, inclusive financial solutions.
The report also highlighted that NAB and ANZ, the first-ever Australian bank to issue a stablecoin that is pegged to the Australia Dollar, are working in collaboration with financial authorities in the country to develop laws that will guide the creation and use of stablecoins.
The Growth of the Blockchain Industry in Australia
The blockchain industry in Australia has grown in recent years, with an increasing number of businesses and organizations exploring the use of blockchain technology. This expansion has been fueled by a variety of factors, including increased awareness of blockchain’s potential benefits and the rising number of blockchain-based initiatives and startups in the country.
Furthermore, the Australian government has been supportive of the development of the blockchain industry, with several initiatives aimed at promoting innovation and research in the field.
Australia was recently ranked the 4th largest crypto Automated Teller Machine (ATM) hub, thus dethroning El Salvador of the position. The country installed 99 cryptocurrency ATMs between the months of October and December 2022, according to data from CoinATMRadar.
The Reserve Bank of Australia has also launched a one-year research program to assess the economic benefits of issuing a Central Bank Digital Currency (CBDC) in the future.
In terms of industry regulations, the Australian Securities and Investment Commission (ASIC) announced that it is suing Finder Wallet Pty Ltd because it believes the startup violated financial regulations by offering financial services without a registered license.
