NAB Launches ETH CBDC

NAB Launches ETH CBDC

As the digital currency world continues to drive towards mainstream adoption many more Banks are developing central bank digital currencies and this is a space that Australian Banks have continued to put resources in.

You might be wondering why this would be an avenue banks want to pursue and quite frankly it is a very lucrative market and a market need. While UDSC, Tether and many other Decentralised Stable coins are in operation many of them continue to succumb to issues relating to maintaining their pegs.

A Centralised Bank Digital Currency while still potentially having similar issues it also has the benefit of having insurance and governance practices in place to ensure investors don't suffer as large losses as private decentralised stable coins.

Australia Leading Crypto Reform

Australia has long been known as the lucky country and when it comes to crypto not much is different for example me writing this article and being paid in crypto goes on my income tax. There are some additional new changes which enable me to move things around a bit in relation to what I do with the crypto I earn. If I am spending it directly that is a different use and for most of the stuff here on Leo Finance and Hive I haven't made anything to write home about and mainly goes down as a hobby.

I look forward to the day I earn a decent sum and meet a different regulation, I do however, utilise Hive for a number of different things while Leo is a Hobby I also do business promotion and advertising but the main thing is that here in Aus we are driving not so much Crypto adoption but implementing measures that enable the new tech industry to fit along side and form much of our normal Business As Usual operations.

The She'll be right mate attitude

With our laid back and "She'll be right mate" attitude our banks have been moving into the stable coin business and for good reasons as mentioned above, stable coins are a much needed asset in the digital currency world. Not only do they provide investors a safe position but they are also good liquidity pairs.

Markets need confidence in order to operate and there is nothing that gives a market more confidence than a Bank getting involved. Now given the collapses recently you might be wondering why. That's an easy question as we have seen both US and UK Governments come to bail out the banks this means investors know they will get their cash back if banks stuff up. It might not be 100% of funds but it isn't $0 either.

World First CBDC Cross Boarder Transaction

In a world first for banks NAB completed the first cross boarder payment with their CBDC which is being pegged to AUD and is called AUDN. NAB isn't just stopping at developing an Australian pegged dollar they are also developing a US pegged dollar.

All this is built on the Ethereum Network which has been a favorite for many mainstream investors and banks across the world which enables them the freedom to develop their own currencies.

NAB anticipates to have their Blockchain cross boarder payment system up and running and ready for retailers to accept crypto by the end of 2023 ushering in a new era in financial services and international banking.

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