RBA to Test CBDC in $1 Billion Market on Stellar Blockchain to Serve Millions

Overview of the Article

  • Novatti has been approved to join the pilot test program by the Reserve Bank of Australia (RBA) to test Central Bank Digital Currency (CBDC).
  • Stellar Lumens will be used in this pilot and Novatti will issue a stablecoin, eAUDD, backed 1:1 with digital Australian Dollar.
  • The focus of this test is to see whether a stablecoin pegged to a fully-backed CBDC can generate customer confidence as it relates to stablecoin.

Reserve Bank of Australia Testing CBDC on Stellar Blockchain

The Reserve Bank of Australia (RBA) has announced that it is testing its Central Bank Digital Currency (CBDC), using the help of private industry players. One such partner is Novatti, which has been approved to take part in this pilot test. The blockchain protocol being used for this project is Stellar Lumens.

Novatti Issuing Stablecoin eAUDD Backed 1:1 With Digital Australian Dollar

As part of its role in the project, Novatti will be issuing a stablecoin called eAUDD. This stablecoin will have its full reserve backed by the RBA and will be pegged 1:1 with the digital Australian Dollar. It can be used by users to verify the CBDC’s reserve and also for making purchases or donations through non-fungible tokens (NFTs).

Testing Whether Stablecoins Can Generate Customer Confidence

The purpose behind this pilot is to assess whether a fully-backed CBDC can inspire confidence among customers when it comes to using stablecoins for payments. Across the world, central banks are looking into different possibilities as far as CBDCs go due to their cheaper and faster alternatives compared with fiat notes. To ensure user privacy while using these currencies, many apex banks are leveraging other technologies apart from blockchain technology.

Private Industry Players Helping Expand Scope Of Research

To expand their research scope further, many central banks are reaching out for help from private industry players that specialize in payment services – such as Novatti – so they can get meaningful real-world use cases out of their CBDCs. In line with this move, they want partners who can provide insights on how best they should structure their systems so they can attract more users without compromising security or privacy.

In conclusion, central banks around the world are increasingly exploring different possibilities that cryptocurrencies offer due to their speed and cost efficiency when compared with fiat notes. Private companies like Novatti have joined forces with some apex banks like RBA in order to extend their research scope and optimize user experience when dealing with CBDCs. Through these projects, users will be able to access both secure and transparent payment services through Stellar Lumens that are backed by fully-reserved CBDCs issued by RBA via eAUDD stablecoins.