• Novatti has been approved to join Australia’s Central Bank Digital Currency (CBDC) pilot test program.
• The CBDC will be a stablecoin, called eAUDD, which will be 1:1 with the Australian Dollar and fully backed by the Reserve Bank of Australia (RBA).
• The purpose of the pilot is to test if a stablecoin pegged to a fully backed CBDC can increase customer confidence in using stablecoins.
Novatti Joins Australia’s CBDC Pilot Test Program
Novatti has recently been approved to join Australia’s Central Bank Digital Currency (CBDC) pilot test program. This program is being conducted by the Digital Finance Cooperative Research Centre (DFCRC) in conjunction with the Reserve Bank of Australia (RBA).
Purpose of The Pilot Test
The primary goal of this pilot test is to determine if a stablecoin backed by a CBDC can boost customer confidence when it comes to utilizing stablecoins. During this pilot, Novatti will issue its own digital currency, known as eAUDD, which will be pegged 1:1 with the Australian Dollar and fully-backed by RBA reserves.
Utility Of The Stablecoin
The eAUDD stablecoin generated from this trial will have limited spending power and users can utilize it to purchase non-fungible tokens or make charitable donations. Through this trial, it is expected that customers‘ trust in using digital currencies will likely increase.
Central Banks Exploring Different Technologies
It is not uncommon for Central Banks around the world to carry out research into different possibilities related to CBDCs. This research is becoming increasingly popular due to cryptocurrencies providing cheaper and faster alternatives compared to fiat notes. To ensure user privacy remains intact during these tests, Central Banks are partnering up with private industry players like Novatti who specialize in payment methods.
Stellar Lumens (XLM) is making impressive strides in its payment system and one of its major partners, Novatti has been selected as part of the Reserve Bank of Australia’s central bank digital currency (CBDC) pilot test program. The aim of this test is to see whether a fully-backed CBDC pegged 1:1 with an Australian dollar can bolster customer confidence when it comes to utilizing stablecoins like eAUDD issued by Novatti during this trial period.