The first foreign exchange (FX) transaction using the Reserve Bank of Australia’s central bank digital currency (CBDC) has been a success.
ASX-listed DigitalX (ASX:DCC) and fund manager TAF Capital were involved in eAUD to USDC stablecoin trading on May 17, with blockchain fintech Canvas at the center of test FX trades.
Trading was part of the RBA and Digital Finance Cooperative Research Center CBDC pilot.
So says David Lavecky, CEO of Canvas Digital the Canvas CBDC exchange showed how the RBA’s eAUD can be used to quickly and efficiently trade AUD for other international currencies.
“The eAUD, as a CBDC, has the potential to address critical challenges in both FX and international remittance markets, such as improving transactions times, lower costs and more open access. We believe that CBDCs, tokenized bank deposits and digital securities will revolutionize finance and markets in the next decade,” he said.
“Our use case shows the benefits of using CBDCs in tokenized FX transactions and how our privacy-focused Layer 2 blockchain offers improvements over traditional markets by eliminating market inefficiencies, errors and settlement risks.”
Canvas is one of the few selected Use Case Providers in the RBA eAUD project in addition to the ANZ and Commonwealth banks and MasterCard.
Digital X CEO Lisa Wade said she was proud to be involved in a historic moment.
“We believe CBDCs are a natural evolution of Ccurrency and we are excited to test FX transactions on Canvas CBDC exchange and Layer 2 Blockchain,” she said.
“It will boost our rollout key strategic initiatives, our tokenization fund for real-world assets and digitizing investment processes.”
TAF Capital co-founder Michael Prendiville said FX markets and international remittance networks are known for it be slow, expensive and error-prone.
“This transaction is an exciting move that will radically transform and create the financial and capital markets efficiencies that were not available until now,” she said.
“Traditional currency markets and international transfers networks are known to be slow, expensive and prone to errors, we now have a secure and safe solution.”