Just like has already happened with the US Dollar and the Euro, among others, Australia is about to get its first Aussie-backed stablecoin.
This will be made possible by a partnership between Bit Trade, one of the oldest cryptocurrency exchanges in Australia, and blockchain employment platform, Emparta. The two firms will collaborate in designing and launching the stablecoin which is expected to be launched next year.
According to the managing director of Bit Trade, Jonathon Miller, the AUD-backed stablecoin will fill a gap that exists in the market as it will act as a buffer against the wild fluctuations associated with cryptocurrencies.
“Stablecoins solve one of the principal issues that may drive investors seeking steady returns and merchants that currently accept traditional currency away from digital currencies: volatility,” wrote Miller in a statement. “We believe that stablecoins will boost trust, accelerate wide-spread adoption, and could function as the backbone of blockchain-based financial applications, especially here in Australia given the favourable regulatory environment.”