Australia has successfully executed a foreign exchange (FX) transaction using its central bank digital currency (CBDC), according to blockchain startup Canvas. The global fintech company said the transaction, which was conducted between digital and TAF Capital using the eAUD and USDC stablecoin, was performed on its Connect platform, which is built on the Ethereum network. Canvas claims the platform provides users with confidentiality, scalability, immediate completion times and reduced transaction costs. The company also plans to use ZK (zero knowledge) Layer 2 technology to improve on the present-day FX system. Canvas is one of 15 use case providers selected as part of the Reserve Bank of Australia’s eAUD project.
Are CBDCs Really Worth The Hype?
CBDCs are digital forms of a country’s fiat currency issued by the central bank. They have similar characteristics to cryptocurrencies, except that their value is typically tied to a country’s fiat currency. Virtually every country is either developing or has already implemented digital currencies. Central banks believe digital currencies will improve their local economies, as well as facilitate cross-border payments. However, some argue that the costs and risks of creating a CBDC outweigh the benefits. Only time will tell whether CBDCs are worth the effort for central banks or whether they will be seen as a mistake.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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