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

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

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

In an announcement, blockchain infrastructure supplier Canvas mentioned 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 successful over what it known as the “gradual, costly and susceptible to errors” conventional FX and remittance networks.

The FX commerce was a part of a collection of checks presently underway because the nation explores potential 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’ take a look at explored use of eAUD in tokenized FX settlements, which might level in the direction of the advantages of utilizing the CBDC over fiat currencies and present 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 executed 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 equivalent to “enhancing transaction instances, lowering charges and offering extra open entry.”