A New Era in Australia: First CBDC Transaction Is Made

As part of a pilot study for the country’s possible CBDC, Australia has completed its first foreign exchange transaction using the eAUD. This is occurring at a time when several nations are showing an interest in learning more about digital currencies issued by their central banks or perhaps launching their own.

Canvas, a Blockchain Company, Made the Test Transaction

Canvas said on May 17 that DigitalX and TAF Capital, managers of cryptocurrency funds have traded eAUD against the stablecoin USD Coin . Canvas said that the transaction cleared quickly, claiming victory over “slow, expensive and error-prone” conventional FX and remittance networks .

The FX operation was one of several trials run as the nation investigates possible applications for a CBDC. The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Center (DFCRC) started the pilot program .

It is possible that the benefits of employing CBDCs over traditional fiat currencies and settlement systems were tested in the Canvas study which investigated the usage of eAUD in tokenized currency settlements .

Canvas spokesperson said: “By showcasing the benefits of employing CBDCs like eAUD in tokenized currency transactions on our privacy-centric Layer 2 network and blockchain-based financial markets apps we want to pave the way for widespread adoption of CBDCs .”

Canvas “Connect” is a layer 2 of Ethereum that employs StarkWare’s zero-knowledge (ZK) technology, where the transaction took place .

2A New Era in Australia- First CBDC Transaction Is Made

The eAUD Transaction Is Historic

Canvas CEO David Lavecky referred to the transaction as “historic” and said that the digital dollar might help solve problems in the FX and remittance markets by “improving transaction times, reducing fees, and providing more open .” Australia and New Zealand (ANZ) Bank utilized CBDC to conduct a trial run of carbon credit trading in April .

Credits were traded on a public blockchain by ANZ using its own A$DC stablecoin, backed by eAUD, and the settlement was said to have happened in “near real time .” Offline payments, distribution, custody, tax automation, “trusted Web3 commerce” and even cattle auctions are among the other use cases being examined .

The start date of the pilot project was March 31 and the expiration date is May 31. On June 30th, a report will be released that assesses the various use cases .