Novatti participates in CBDC pilot with Digital Finance Cooperative Research Centre and the RBA
ASX-listed Novatti Group, a leading fintech enabling businesses to pay and be paid, has announced Novatti and AUDD’s participation in a research project to explore the potential use cases and economic benefits of a central bank digital currency (CBDC) in Australia.
An initiative led by the Digital Finance Cooperative Research Centre (DFCRC) in conjunction with the Reserve Bank of Australia (RBA), Novatti is among a cohort of leading industry players that is taking part in a limited-scale CBDC pilot that will have a real claim on the Reserve Bank.
In this pilot, Novatti will issue a supplementary stablecoin, known as eAUDD. eAUDD is an Australian dollar stablecoin that will be backed 1:1 by Pilot CBDC issued by the RBA and allow customers to independently verify the reserve. An invite-only group of participants will be able to obtain eAUDD on the Stellar blockchain, where it will be used to purchase a non-fungible token (NFT) in order to make a charitable donation.
The outcomes of the eAUDD pilot will indicate whether a stablecoin with 1:1 backing by a CBDC could lead to greater customer confidence in the validity of stablecoins. A wider acceptance of stablecoins could also lead to safeguards in bank regulation, secure payments and improved financial stability for users.
Peter Cook, CEO of Novatti Group, said, “We are very excited to be selected for this first-of-its-kind opportunity to help shape the future of CBDCs and promote the use cases for high governance stablecoins in Australia. Novatti’s stablecoin service was created with a focus on compliance, security and utility, all of which will support the innovative CBDC trial.”