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

Australia has efficiently made its first international trade transaction utilizing eAUD as a part of a stay 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 known as the “sluggish, costly and vulnerable to errors” conventional FX and remittance networks.

The FX commerce was a part of a collection of checks at present underway because the nation explores attainable use instances for a CBDC. The pilot program was launched by the Reserve Financial institution of Australia (RBA) at the side of 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 exhibit the advantages of utilizing CBDCs like eAUD in tokenized FX transactions utilizing our privacy-focused Layer 2 Community and blockchain-based monetary markets functions. Learn extra right here https://t.co/RPjSF5B8s0

— CANVAS (@canvas_defi) March 6, 2023

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

Canvas’ CEO David Lavecky known as the commerce “historic” and added the digital greenback might probably deal with challenges in FX and remittance markets akin to “bettering transaction occasions, decreasing charges and offering extra open entry.”