HISTORY MADE: Australian Bank Creates worlds first CBDC

In a history defining moment the ANZ Bank in Australia has created the first Bank backed digital currency pegged to the Australian Dollar.

The announcement was made in the Financial Review and the token is called A$DC. The digital asset was created to support digital asset investment of the billionaire investment family Victor Morgan Group and a trade of $AUD30 Million was trialled seeing the investment group move the money and settle within 10 minutes. The usual time frame would be a few days as reported in the Australian Financial Review.

The trial also enabled Victor Morgan Group to purchase Bitcoin and other Digital assets cheaper through reducing the need of costly exchanges and transfers.

How it is backed

The A$ DC is a smart contract tipped to be an ERC-20 token on the Ethereum Blockchain and is backed 1:1 with Fiat currency in a bank account. The ANZ Bank is currently planning on entering the market and have the A$DC listed on multiple exchanges which it anticipates as the first Bank backed digital asset and only Bank backed asset will drive significant investment as the current leader in stable coins USDC does not have enough collateral to fully support it. A key problem for a number of stable coins currently on the market.

The emergence of a Bank backed stable coin accessible on all markets will drive significant investment and provide security as the A$DC will always be pegged to the Australian fiat equivalent.

Working with regulators

The ANZ Bank is committed to working with regulators and is hopeful to cement Australia as the home of digital assets and support the emerging technology sector by providing security and safety to investors while also developing new payment methods.

The SMT has been audited by Openzepplin however, in what can only be described as a WEB3 first the audit is not listed on Openzepplin's website. No doubt a move that if, true will harm the opensource transparent company for providing favours to banks and closing off open and transparency which is the back bone of decentralised finance.

Furthermore, I was unable to find A$DC anywhere on Etherescan and as many seasoned blockchain enthusiasts know that if a contract is created and operational we should be able to easily find the contract and token as well as all its listed transactions.

Questions will arise on the legitimacy of associated parties if different rules or current Web3 rules are being bent and broken to accommodate banks with many crypto enthusiasts standing firmly against such actions.

Given that, a Bank backed stable coin will be highly valuable to investors but with the inability to verify the contract or token this leaves ANZ Bank open to copycat tokens which will likely scam investors out of millions of dollars.

In fact, anyone creating a token called A$DC right now will end the real token in its tracks unless it opens up its SMT for public viewing to enable users to verify the real token from fake ones.

Interesting times a head, that's for sure.

Image sources provided supplemented by Canva Pro. This is not financial advice and readers are advised to undertake their own research or seek professional financial services