As part of a live pilot for the nation’s proposed central bank digital currency (CBDC), Australia has successfully completed its first foreign exchange transaction using eAUD.
It comes at a time when more nations worldwide are eager to learn about or introduce digital currencies issued by central banks.
Blockchain infrastructure provider Canvas revealed that on May 17 local time, eAUD was traded against the stablecoin USD Coin by crypto fund managers DigitalX and TAF Capital.
In comparison to what it called the “slow, expensive, and prone to errors” existing FX and remittance networks, Canvas said the transaction was cleared quickly and hailed it as a success.
The FX trade was part of a series of tests currently underway as the country explores possible use cases for a CBDC. The pilot program was launched by the Reserve Bank of Australia (RBA) in conjunction with the financial research institute the Digital Finance Cooperative Research Centre (DFCRC).
The benefits of employing the CBDC over fiat currencies and current settlement platforms may be indicated by Canvas’ test of the use of eAUD in tokenized FX settlements.