National Australia Bank (NAB) has decided to end its stablecoin project, AUDN, due to a lack of customer demand. In response, the team will be partnering with Ubiquity, an independent Australian dollar stablecoin. NAB had initially anticipated that the AUDN stablecoin would be used for cross-border transactions and other purposes.
Australia is also considering the introduction of an Australian Dollar CBDC and has been working with the Digital Finance Cooperative Research Centre (DFCRC) to explore this concept. While Australia has not yet announced concrete plans for an eAUD, other countries are making significant progress with their own CBDCs, which may pose competition for private stablecoins.
The negative reputation of Tether, the largest private stablecoin, further undermines the credibility of such coins. Tether’s alleged ties to terrorism and trafficking, along with its failure to prove its US dollar backing, have raised concerns. The US government considers private stablecoins a national security threat, a sentiment likely echoed by other governments.
National digital currencies, which can be sent globally in seconds via systems like mBridge, offer a convenient alternative to costly blockchain-based bank-issued coins like those on Ethereum. The National Australia Bank might have considered these factors when deciding to discontinue AUDN.
Several Western nations, including Australia and the US, have yet to announce concrete plans for CBDCs. Lack of urgency and varying public attitudes towards CBDCs are cited as reasons for the slow progress. However, CBDCs are a global trend that could potentially replace most private stablecoins in the near future.