After Russia, it is time for an indigenous cryptocurrency for the Aussies. Three FinTech startups Othera, AgriDigital and FlashFX have submitted use-cases for the implementation of a state-backed Australian dollar cryptocurrency to its Federal Treasury and Central Bank. Named as the Digital Australian Dollar, this cryptocurreny form “would be a huge step to grow our vibrant blockchain and digital currencies industry,” as per Danielle Szhetho, the chief executive of FinTech Australia.
She also added, “Having key stakeholders like the RBA involved in further explorations of an Australian digital currency will help build trust and usage of cryptocurrencies, but at the same time will ensure we do not undermine Australia’s currency stability and monetary policy.”
Cryptocurrency advocate Szhetho has previously voiced her thoughts on the delay caused by Australian government in keeping up with their promise of putting an end to double taxation of digital currencies such as bitcoin. This year’s federal budget finally did manage to put a leash on all such double taxation aspects and introduced “Double Taxation Relief Bill For Cryptocurrency”
FinTech firm FlashFX based out of Sydney is the torchbearer in this movement entered into by similar firms to gain financial services license for an eased out business of international remittance powered by a blockchain architecture. Usually these startups make use of their very own digital currency for entering into such transactions. But now they are demanding in unison for an official state cryptocurrency. These firms hold the belief that such an official currency can trump all private digitized versions of Australian dollar for enhancing trust through a government sponsored form.
Nicolas Steiger, the chief enabling officer of FlashFX stated:- “A government-endorsed digital Australian dollar has the potential to lead to increased trust and certainty, particularly to grow the digital currency marketplace… t would also stop multiple private parties creating a confusing array of ‘Australian dollars’ with no official backing.”
AgriDigital, another blockchain start-up which operates a supply chain aiding both buyers and farmers entering into transactions have also jumped onto the indigenous cryptocurrency bandwagon. Co-founder Emma Weston feels that in spite of blockchain being used for storing, recording and automatically facilitating transactions, a large number of payments are following the physical cash mode outside the crypto periphery because of the inherent volatility and lack of trust. She was quoted as saying:
“A centrally issued Digital Australian Dollar, backed by fiat [physical] currency, would enable payments to be made between participants in real time and 24/7 along the supply chain.”
Othera is the third startup backing up Digital Australian Dollar. Othera usually manages digital loan contracts over the blockchain network. The chief executive of the startup pointed out that the company is being put under extreme pressure to operate in sync with traditional legacy payment systems pertaining to banking industry which process repayments received from borrowers before forwarding the same to the contract’s token holders. John Pellew, the CEO of Othera added :
“This is a slow and expensive process and does not utilize the built-in capability of teh blockchain smart contracts to auto process these repayments…A DAD would unlock the full potential of our blockchain and smart contract technology.”
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