Australia develops stablecoin to boost the digital economy 

The National bank of Australia has revealed plans to launch its own stablecoin AUDN tied to the Australian dollar by mid-2023.

The country aims to upscale the role of banks in driving innovations within the digital economy. Australia hopes stablecoin will make trading, carbon credits, and international and domestic transactions easier. 

AUDN will be featured on the Ethereum network and Algorand blockchain. The minting of AUDN stablecoin will be the sole prerogative of the National bank of Australia (NAB).

NAB chief innovation officer Howard Silby described the development as an atomic settlement that shows how far NAB is willing to transition into some markets. 

DigitalX CEO Lisa Wade, a former NAB executive, in a statement, said the sad experience of the Luna crash in 2022 aroused its interest in stablecoin. If a stablecoin is not properly constructed, it could become a counterparty risk. DigitalX, focused on digital assets, is planning to test the AUDN stablecoin once it is launched. 

The Australian government is also considering the imposition of crypto regulation, but it’s still being determined if stablecoins will fall under the regulation radar; meanwhile, stablecoin regulations were part of a bill drafted by senator Andrew Bragg on September.19, 2022. 

Which countries are planning to launch stablecoins? 

The Central bank of Iran (CBI) on Jan. 15 also revealed that it’s collaborating with the government of Russia to release a stablecoin backed by gold. 

Japan’s Financial Services (FSA) board in Dec. 26 revealed that it would lift the ban on stablecoins in 2023. The FSA plans for stablecoins will ensure that domestic entities in Japan will handle foreign stablecoin transactions following existing guidelines.