May 23, 2024

Australia To Have AUD-backed Cryptocurrency

Two Crypto companies in Australia have come together to produce what will be the country’s first ‘stable coin‘. Further reports have revealed that the digital asset will be pegged to the Australian Dollar. Most Cryptocurrencies are volatile making it more challenging to use them in day-to-day transactions. The duo is yet to enter into a contract with any bank and the coin will be ready next year.

Two Crypto Firms To Launch A Stable Coin

A Cryptocurrency exchange and a Blockchain firm will collaborate on a project to develop the first ‘stable coin’ in Australia. Bit Trade crypto exchange and Emparta will work together to deliver this Australian Dollar-backed coin. Unlike the other coins, stable Cryptocurrencies have fiat currency reserves.

Stable Coin Comes With Various Benefits

Although Cryptocurrencies have been hailed for making it easy for people to send and receive money, most of them are volatile. Within a short period, a coin may appreciate or depreciate significantly thereby making it hard to get the actual value of a product or service in Cryptocurrencies. Stable coins advocates argue that they offer various benefits such as eliminating the volatility challenge and improving transaction speed.

USDT is one of the most popular stable coins and runs on Tether Crypto platform. The currency is backed by the USD. Nevertheless, many doubt if Tether really has enough dollar reserves. This fear has seen many people fear to use the virtual currency.

The users of the new AUD-backed coin will be able to redeem it on demand according to James Hill. Emparta’s COO believes that this feature will make the coin differ from Tether making it more attractive to users. Emparta is a popular employment-based Blockchain platform and plans to facilitate the use of this coin in salary payments.

How The New Coin Will Work

According to Mr. Hill, salaries will be paid in the traditional fiat currency. Once the money gets into the nominated treasury account, the stable coin is minted. The coins are then ‘burnt’ when the recipient wants to redeem the funds. There will be no delays in this transaction.

Mr. Hill said that the new coin will give the employees an opportunity to receive payment in the stable coin and other Cryptocurrencies. When they want to send the money outside the country, the other coins could serve the purpose.

The development of the new coin is still in the early stages according to Mr. Hill. They are working hard to ensure everything works well before the coin is launched. He has said the coin will be released next year.

Given that this project should be approved by regulators, Mr. Hill revealed there are already contacted ASIC, the corporate regulator, and tax authorities. ASIC talks mainly focused on their agreement with prospective banking partners. However, no deal has yet been signed with any bank. Mr. Hill has said that they will not be working with any of the big four Aussie banks. However, he has said several small banks are already interested in the project.

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