• Novatti has been approved to join the pilot test for Australia’s Central Bank Digital Currency (CBDC) project, which will focus on testing a stablecoin pegged to a fully backed CBDC.
• The CBDC pilot test is being conducted by the Reserve Bank of Australia (RBA) and other participants like the Digital Finance Cooperative Research Centre (DFCRC).
• Novatti will be issuing a stablecoin called eAUDD, which is backed by RBA and designed to empower users with spending powers and enable them to verify their reserve of the CBDC.
Novatti’s Participation in Pilot Test Program
Novatti has landed the approval to join the pilot test for Australia’s Central Bank Digital Currency (CBDC) project. As announced by Novatti, this pilot test program is conducted by the Reserve Bank of Australia (RBA), in conjunction with other participants such as the Digital Finance Cooperative Research Centre (DFCRC).
The Stablecoin eAUDD
Novatti’s role in this test program revolves around issuing a stablecoin dubbed as eAUDD. This stablecoin is 1:1 pegged with digital Australian Dollar and it is fully backed by RBA. The design of this token enables users to verify their reserve of the CBDC and gain spending power from it through purchasing a non-fungible token (NFT) for charitable donation.
Testing Utility With Private Companies
Central Banks around the world are increasingly researching into different possibilities that come with CBDCs due to its potential as cheaper and faster alternative than fiat notes. To help expand its research scope, private companies such as Novatti are providing support through testing out utilities that offer real-world use cases using blockchain technology.
Stellar Lumens‘ Role in CBDC Pilot Test
Stellar Lumens will be featured in this pilot test program and harbor its utility via employing blockchain technology for payments. It provides an opportunity for Stellar Lumens to demonstrate its effectiveness within an environment where user privacy is highly regarded yet still providing benefits such as faster transactions at low cost.
The Reserve Bank of Australia’s decision to include Novatti into its CBDC pilot test program along with Stellar Lumens shows promising signs that blockchain technology can be employed in a secure manner while offering benefits such as cheaper and faster transactions compared to traditional fiat currencies. This testing phase could potentially set new standards for how digital currencies are used across various industries globally if proven successful.