The blockchain firm Canvas reported that the first Australian dollar trade against the US dollar was completed instantly with the use of blockchain technology.
The central bank digital currency (CBDC) is basically a centralised form of money. So far less than two dozen countries developed their CBDC (or say digital form of sovereign fiat money). Australia has also been in the CBDC development race for a couple of years.
On 17 May 2023, Australia’s blockchain infrastructure provider firm Canvas announced that assets fund managers DigitalX and TAF Capital successfully executed a trade of eAUD against the stablecoin USD Coin (USDC).
As we know that recently the Reserve Bank of Australia (RBA) launched the CBDC test program, to explore the numbers of better use cases & also to identify the challenges associated with CBDC. And the latest digital trade by DigitalX & TAF was a part of RBA’ CBDC pilot program.
Here people need to understand that Canvas is the main tech actor behind eAUD. eAUD is running on a layer-2 network. And the trade was completed against USDC stablecoin on the Ethereum blockchain. In short, the financial transaction occurred in two blockchain networks, where one of the blockchain networks was designed by a centralized body & other was designed by a public devs community.
Here we can say that the transaction was not decentralized & also not fully centralized. Canvas played an important role to bring centralized nature to the transaction, as a layer-2 scaling network on the Ethereum blockchain.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.