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Novatti Group, a prominent fintech company enabling businesses to send and receive money, has revealed its involvement in a research project exploring the potential use cases and economic advantages of Central Bank Digital Currency (CBDC) in Australia. This initiative is led by the Digital Finance Cooperative Research Centre (DFCRC) and the Reserve Bank of Australia (RBA). Novatti is among the industry leaders participating in a limited CBDC pilot project directly associated with the RBA.
The eAUDD Stablecoin Pilot Project
In this pilot project, Novatti will issue an additional stablecoin known as eAUDD. eAUDD is a stablecoin pegged to the Australian dollar and will be backed 1:1 by the Pilot CBDC issued by the RBA. It will enable customers to independently verify the reserve. Participation in this pilot project on the Stellar blockchain will be by invitation only. The eAUDD will be utilized for purchasing non-fungible tokens (NFTs) for charitable donations.
Assessing Trust in CBDC-Backed Stablecoins
The outcomes of the eAUDD pilot project will reveal whether a stablecoin backed 1:1 by CBDC can enhance customer trust in stablecoins. Wider acceptance of stablecoins could lead to improved banking regulation compliance, secure payments, and increased financial stability for users.
Peter Cook, CEO of Novatti Group, commented: “We are delighted to have been selected for this groundbreaking opportunity to help shape the future of CBDC and promote high-control stablecoin use cases in Australia. Novatti's stablecoin service has been designed with a focus on compliance, security, and utility, all of which will support this innovative CBDC pilot.”
The CBDC pilot project is expected to conclude at the end of May, with results slated for release in mid-year.
