Australia is one of the most recent countries to be on the verge of implementing a central bank digital currency (CBDC). Canvas, a blockchain startup, has reported the successful usage of an Australian CBDC to perform an FX (foreign exchange) transaction as part of the CBDC launch study.
Australia signs its first currency agreement with CBDC
CANVAS announced a successful effort to perform the first foreign exchange transaction utilizing the Australian CBDC on Thursday, May 18, 2023. The global finance corporation made the announcement public via a press release on its website.
This historically important transaction is part of a pilot program initiated by the Reserve Bank of Australia – RBA (Australia’s central bank) and the Digital Finance Collaborative Research Center (DFCRC) to develop CBDC – AUD.
A large foreign exchange transaction – the exchange of eAUD for USDC stablecoins – was carried out digitally at TAF Capital on Wednesday, May 17. The transaction is carried out on the Canvas Connect platform, which is built on the basis of the Ethereum network.
The fintech company says the platform will offer users privacy, scalability, downtime, and low transaction costs. Also, the blockchain company promises to use layer 2 technology – ZK (free knowledge) to improve the current FX system, which has some disadvantages, including the inability to work 24/7 throughout the year, the cost-high weaknesses, and errors.
Canvas demonstrates the benefits that CBDC will bring to traditional financial markets, corporations, cross-border payments, and more. business hours, eliminate market imbalances, reduce costs, etc.
Canvas is one of only 15 selected suppliers to be used in the RBA eAUD project. Other providers selected by the Reserve Bank of Australia include ANZ BANK, The Commonwealth Bank of Australia, Intuit, and MasterCard.