Lately it’s no longer a surprise; And many banks and government agencies are busy creating one stablecoin. Similarly, National Australia Bank (NAB) is set to launch its own stablecoin. The stablecoin, called AUDN, is expected to go live in mid-2023.

Australian banks are betting on blockchain

National Australia Bank is one of the big four banks in Australia, but it is not the first Australian bank to introduce a stablecoin. Australia and New Zealand Banking Group (ANZ) preceded NAB last March. Then 30 million stablecoins linked to the bank were issued.

This week continues with A Official statement Australian Financial Review using AUDN Ethereum (ETH) and Algorand (ALGO) blockchains. Stablecoin will mainly be used for international transactions Carbon credit trading. Additionally, the AUDN is backed one-to-one by the Australian dollar. Chief Innovation Officer NAB’s Howard Silby is optimistic about the use Blockchain technology.

“We strongly believe that certain elements of blockchain technology will shape the future of finance. In our view, blockchain has the potential to realize faster, transparent and inclusive financial opportunities.

Blockchain is great

As mentioned, NAB is the second of the four major Australian banks to introduce the fiat currency. Initially, however, these four banks had a joint plan to create a national stablecoin. However, this plan failed. Banks were not aligned and were at different stages in terms of adoption and strategy.

Jonathan Miller, director of crypto exchange Kraken’s Australian branch, believes banks are starting to recognize the value of blockchain technology. He doesn’t expect this trend to slow down.

“The adoption of crypto technology by leading financial institutions such as ANZ and NAB is a recognition of the advantage of blockchain technology over traditional payment methods.”