National Australia Bank Launching Stablecoin

The National Australia Bank has announced the launch of a new stablecoin backed by the Australian Dollar and Ethereum on Algorand, becoming the second major financial institution in Australia to do so. The new coin, AUDN, will launch on the Ethereum blockchain later this year and will rival Australia and New Zealand Bank's coin, A$DC, which was minted last year. 

According to Decrypt and as indicated by early uses of A$DC, The National Australia Bank's stablecoin allows for carbon credit trading and could have an impact on Australia's energy transition plans along with other Australian coins. Private investor Victor Smorgon Group used the stablecoin to purchase carbon credits last June in an innovative deal signaling that cryptocurrencies could be crucial as new markets drive the transition. 

The four major banks in Australia are individually working on issuing their own coins after attempts at a joint Australia-wide creation failed. The country's central bank is going ahead with a pilot scheme of central bank digital currency due to be completed in mid-2023. Prime Minister, Anthony Albanese, has pledged to modernize Australia's financial systems in order to accommodate cryptocurrency and other new financial innovations.