Web3 Diaries – Australia Marks 1st FX Transaction
Australia has successfully made its first foreign exchange transaction using eAUD as part of a live pilot for the country’s potential central bank digital currency.
It comes amid a rising interest from countries around the world to learn about or launch central bank-issued digital currencies.
Blockchain infrastructure provider Canvas said that on May 17, crypto fund managers DigitalX and TAF Capital traded eAUD against the stablecoin USD Coin.
Canvas reported the transaction was settled instantly and touted it as a success over what it called the “slow, expensive and prone to errors” traditional FX and remittance networks.
The FX trade was part of a series of tests currently underway as the country explores possible use cases for a CBDC. The pilot program was launched by the Reserve Bank of Australia (RBA) in conjunction with the financial research institute Digital Finance Cooperative Research Centre (DFCRC).
Digital asset investment product outflows total $200M
During the week ended May 13th, the digital asset investment products witnessed outflows of $54 million, CoinShares said in its weekly report.
That trend of outflows has been ongoing for four consecutive weeks, bringing the period’s overall outflow to around $200 million and representing 0.6% of total assets under management, the report added.
Bitcoin (BTC) specifically saw outflows that amounted to nearly $38 million, accounting for 80% of all outflows. Eight altcoins saw inflows, CoinShares said.
Tether allocates 15% of net realized profits to buy Bitcoin
Tether – the company behind the largest stablecoin by means of total market cap – USDT – will be buying Bitcoin. It joins the rank of other large corporations by adding the primary cryptocurrency to its balance sheet.
Tether revealed that starting this month (May), the company will “regularly” allocate as much as 15% of its net realized operating profits in Bitcoin.
According to the official press release, its current and future BTC holdings in its reserves won’t be exceeding the Shareholder Capital Cushion, while it will also strengthen its reserves.
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