What is a good stable-coin for carbon trading?

Are you taking steps to reduce your environmental footprint? With climate change an increasingly pressing reality, many of us are looking for ways to make our mark in the fight against global warming. One emerging way is through carbon trading – using a special type of digital currency called stable-coins. Stable-coins are cryptocurrency tokens created specifically to be used as vehicles for sustainable investing and environmental conservation projects. In this blog post, we’ll explain what a stable-coin is, how it works in relation to carbon trading, and identify some good candidates that investors should consider. Keep reading to learn more!

Australia’s most well-known ‘Big 4’ bank has created a stable-coin for carbon trading and remittances, revolutionising how we approach transacting money internationally.

In a push to promote the digital economy, another major Australian bank has followed suit and launched its own stable-coin pegged to the Australian dollar. This marks two of Australia’s “Big Four” banking institutions now offering these products.

NAB is soon to emerge as the second of Australia’s “Big 4” banks to launch a digital currency pegged in AU dollars, exclusively on Ethereum.

Slated to launch in mid-2023, the AUDN stable coin is set to revolutionize cross-border remittances and carbon credit trading, according to an article from the Australian Financial Review (AFR). This groundbreaking token will make global transactions a breeze while simultaneously providing access to efficient digital marketplaces. With it’s premiering just around the corner, now is your chance for you or your business to seize this unique opportunity!

Howard Silby, NAB’s Chief Innovation Officer, shares that the motivation behind creating AUDN stablecoin — pegged to its Australian equivalent 1:1— was rooted in their conviction that blockchain technology will be essential for finance’s next evolutionary step.

“We certainly believe there are elements of blockchain technology that will form part of the future of finance […] From our point of view, we see [blockchain] has the potential to deliver instantaneous, transparent, inclusive, financial outcomes.”

By incorporating AUDN for instantaneous, international transfers of money, customers would be able to avoid the lengthy and costly SWIFT payment network.

Silby revealed that carbon credit trading and tokensised real-world assets will be two main applications of AUDN. Furthermore, they plan to supply stable-coins in several currencies where the bank holds a license.

After rival ANZ bank debuted its own stable-coin, A$DC, in March with 30 million tokens for international remittances and carbon trading, NAB has responded by launching their AUDN nine months later.

Before ANZ and NAB’s launch of their stable-coin projects, the two banks had partnered with Commonwealth Bank of Australia and Westpac to bring forth a nationwide project involving a AUD backed stable-coin. This would allow all four “Big Four” Australian banks to join forces in order to offer this new currency solution.

Nevertheless, the AFR reported that this attempt failed due to competition issues and uneven banking progress in terms of adoption and strategy.

Jonathon Miller, the Managing Director of Kraken Australia’s cryptocurrency exchange, informed Cointelegraph that banks are starting to recognise blockchain technology’s technical superiority over traditional legacy systems:

“The persistent adoption of crypto technology by financial institutions like ANZ and now NAB for its potential to create significant efficiencies in the financial system […] is an explicit recognition of the competitive advantage over traditional payment systems.”

With assurance, he declared that this pattern will carry on and ultimately evolve to include the adoption of several other digital currencies and tokens for a multitude of increasing use cases in Australia’s economy.

It is yet to be determined how well private stable-coins from banks would cooperate with the Reserve Bank of Australia’s eAUD, a central bank digital currency (CBDC) that has recently entered its testing phase.

NAB is certain that these two technologies can coexist and deliver distinct, individual benefits.