Marks Australia’s first forex transaction using CBDC

Australia has reached a significant milestone in its exploration of Central Bank Digital Currency (CBDC) by successfully conducting its first foreign exchange transaction using the Australian Digital Dollar (eAUD) in a live pilot. The transaction involves trading eAUD against the stablecoin USD currency on the Ethereum Layer 2 blockchain powered by blockchain infrastructure provider Canvas. Supports is

Crypto fund managers DigitalX and TAF Capital participated in the trade, which settled immediately. Canvas highlighted the transaction’s success and emphasized its superiority over traditional forex and remittance networks, which are often slow, expensive and prone to errors. Initiated by the Reserve Bank of Australia (RBA) in partnership with the Digital Finance Cooperative Research Center (DFCRC), the pilot project is part of trials exploring potential use cases for CBDC.

Canvas’s trial focused specifically on tokenized FX settlements using eAUD and demonstrated the potential benefits of using CBDC over fiat currencies and existing settlement platforms. Trading takes place via Canvas’ Connect, a decentralized application built on Ethereum’s Layer 2 technology and leveraging StarkWare’s Zero-Knowledge (ZK) roll-up technology.

Canvas CEO David LaVecki described the trade as “historic” and highlighted the digital dollar’s potential to address challenges in the foreign exchange and remittance markets, including improving transaction times, reducing fees and providing greater access.

Australia and New Zealand Bank (ANZ) also conducted a pilot trial using CBDC for carbon credit trading in April. ANZ will use eAUD to support its A$DC stablecoin to trade funds on the public blockchain, with real-time settlement.

The ongoing pilot project, scheduled to begin on March 31 and end on May 31, is exploring various use cases such as offline payments, distribution, policing, tax automation, trusted Web3 commerce and livestock auctions. The results and evaluation of these use cases will be published in a report on June 30.

Australia’s successful FX transaction using eAUD represents a significant step forward in the country’s exploration of potential CBDC. By leveraging blockchain technology and digital currencies, Australia aims to increase efficiency, reduce costs and improve access in financial transactions, opening up new opportunities for its openness. As far as the financial ecosystem.

Image Source: Pixabay