Exclusive: Reserve Bank of Australia’s Approach Towards Issuing eAUD is “Multifaceted,” Says Canvas Head David Lavecky

cryptonews.com:

A recent report from the U.S.-based Atlantic Council think tank revealed that a total of 130 countries are now exploring central bank-issued digital currencies (CBDCs). Over half of those are already in advanced development, pilot or launch phases.

However, when it comes to Australia, the process of issuing the digital version of Aussie dollars (eAUD) is “multifaceted,” says David Lavecky, head of blockchain firm Canvas.

Speaking to Cryptonews, Lavecky explains why an Australian CBDC is “some years away,” as confirmed by the Reserve Bank of Australia (RBA) in August. He also stresses on addressing challenges including legal, regulatory and operational, before considering a CBDC launch.

Cryptonews: How was Canvas involved in the entire process of the Australian CBDC research and pilot in the last year? What were the conclusions drawn during the research and trial?

David Lavecky: Canvas was selected to demonstrate foreign exchange transactions using CBDC. Utilizing our Layer 2 ZK network – Canvas Connect, – we successfully conducted Australia's first-ever foreign exchange transaction using CBDCs (eAUD to USDC).

The solution has the potential to dramatically increase speed and reduce the risks and costs compared to traditional foreign exchange (FX) trading and remittance networks.

Traditional FX trading and remittance networks do not operate continually, restricting capabilities for instant trade and transfers globally. Public blockchains such as Ethereum offer an alternative but lack privacy, scalability, compliance and regulatory capabilities.

During the past year, we met and successfully demonstrated our solution to the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC). Canvas made the