Australia marks first FX transaction utilizing a CBDC as eAUD pilot continues

Australia has efficiently made its first overseas alternate transaction utilizing eAUD as a part of a reside pilot for the nation’s potential central financial institution digital forex (CBDC).

It comes amid a rising curiosity from nations around the globe to find out about or launch central bank-issued digital currencies.

In a press release, blockchain infrastructure supplier Canvas stated on Could 17 native time, crypto fund managers DigitalX and TAF Capital traded eAUD in opposition to the stablecoin USD Coin (USDC).

Canvas reported the transaction was settled immediately and touted it as a hit over what it referred to as the “sluggish, costly and liable to errors” conventional FX and remittance networks.

The FX commerce was a part of a collection of assessments presently underway because the nation explores potential use circumstances for a CBDC. The pilot program was launched by the Reserve Financial institution of Australia (RBA) along side the monetary analysis institute the Digital Finance Cooperative Analysis Centre (DFCRC).

Canvas’ check explored use of eAUD in tokenized FX settlements, which might level in direction of the advantages of utilizing the CBDC over fiat currencies and current settlement platforms.

We’ll reveal the advantages of utilizing CBDCs like eAUD in tokenized FX transactions utilizing our privacy-focused Layer 2 Community and blockchain-based monetary markets purposes. Learn extra right here https://t.co/RPjSF5B8s0

— CANVAS (@canvas_defi) March 6, 2023

The transaction was carried out on a decentralized app on Canvas’ “Join” — an Ethereum layer 2 that makes use of StarkWare’s zero-knowledge (ZK) roll-up expertise.

Canvas’ CEO David Lavecky referred to as the commerce “historic” and added the digital greenback might probably handle challenges in FX and remittance markets resembling “enhancing transaction instances, lowering charges and offering extra open entry.”