As the ongoing pilot program for the eAUD makes progress, the Reserve Bank of Australia achieved a foreign exchange CBDC transaction using the same.
After Australia declared its intention to develop an Australian digital dollar to join the ranks of global economies worldwide, its central bank, the Reserve Bank of Australia, has been making earnest efforts to implement the same.
Its latest achievements include a successful CBDC transaction, which was a cross-border transaction using the eAUD. The trade was for a USD stablecoin, which was implemented using an Ethereum layer-2 blockchain. Blockchain firm Canvas confirmed the same and reported that TAF Capital and DigitalX, fund managers of crypto, were responsible for the eAUD trade against the USDC.
The test CBDC transaction was part of the many experiments and use cases of the Australian digital dollar currently being explored in the pilot program of the Reserve Bank of Australia. The successful CBDC transaction was also reportedly much faster and smoother than regular cross-border payment mechanisms.
In March 2023, the Reserve Bank of Australia reported the launch of the eAUD pilot when Brad Jones, the Assistant Governor of Financial Systems at the central bank, said, “It has also been encouraging that the use case providers that have been invited to participate in the pilot span a wide range of entities in the Australian financial system, from smaller fintechs to large financial institutions.”
The latest CBDC transaction was completed on the Ethereum layer-2 blockchain Canvas Connect. The CEO of Canvas, David Lavecky, also hailed the achievement of the Australian digital dollar and claimed his trust in such CBDCs largely simplifying the costs of foreign exchange transactions.