Australian blockchain agency, Chrono Tech, has been experiencing difficulties securing a banking accomplice amid the launch of an Australian green
Australian blockchain agency, Chrono Tech, has been experiencing difficulties securing a banking accomplice amid the launch of an Australian greenback (AUD)-pegged stablecoin earlier this month.
The AUD Token (AUDT), obtainable on Chrono Tech’s platform, might be redeemed 1:1 for Australian {dollars} held by a licensed Australian financial institution. Nonetheless, as Chrono Tech’s CEO, Sergei Sergienko, reveals, securing a banking accomplice was not simple.
In an interview with Cointelegraph, Sergienko mentioned his firm’s transition from planning a “labor hour token” to launching a stablecoin, and the regulatory and banking climates for crypto corporations in Australia.
Australia’s ‘Large 4’ banks nonetheless hesitant to accomplice with crypto corporations
Sergienko mentioned that “the toughest problem” concerned within the stablecoin’s improvement and launch was discovering a financial institution that might maintain it in reserve:
“There was dialogue with a few the large 4 [Australian banks], and all people of their analysis groups have been enthusiastic about it, however no person wished to take step one.”
Regardless of getting turned down by Australia’s oligopoly, Chrono Tech rapidly discovered that many smaller banks have been taking a look at blockchain as an thrilling area of interest:
“The brand new banks are very receptive in the direction of crypto, as a result of as they battle to assemble adoption and [try] to modify individuals to them, they’re taking a look at crypto as a distinct segment of types. They do not throw you out the minute they hear crypto.”
That mentioned, he’s reluctant to call the financial institution in case the publicity provides them chilly ft.
AUD stablecoin to streamline worldwide commerce
Sergienko informed Cointelegraph that he hopes the fiat-backed ERC-20 token will grow to be a preferred means for Australians to switch cash and make funds, each domestically and internationally:
“The best use case for it’s when any person pay for one thing or will get cash in an account in AUD, and so they need to ship it their associates, or pay for one thing — a service within the U.S. or no matter — they simply click on a button and the man on the opposite finish will obtain in a few Ethereum blocks.”
He states, “What I want to see taking place is AUD transformed into AUDT, AUDT transformed into USDC or USDT, [and] then transformed into USD — all seamless and built-in. That’s what we’re striving for.”
Chrono Tech transitions from ‘Labour Hour Token’ to stablecoin
The corporate initially started work on one thing known as a ‘Labour Hour Token’ (LHT) in 2016. That was a token backed by legally-binding contractual obligation to supply real-world labor hours.
Nonetheless, they shifted to the creation of an AUD-backed stablecoin roughly 12 months in the past:
“It grew to become obvious that [LHT] was too laborious for individuals to know, so we thought a stablecoin primarily based on AUD could be extra acceptable, since we’re primarily based in Australia.”
Sergienko famous that Chrono Tech encountered few regulatory challenges in issuing the stablecoin, stating that it “positively was not tough” to get the licensing required to transform between cryptocurrencies and fiat foreign money.
AUDT was launched at the beginning of March and is built-in into the Chrono Tech ecosystem. Chrono Tech’s platform additionally contains PaymentX — an automatic cryptocurrency payroll resolution for people and companies, TimeX — a Plasma-based hybrid change, and LaborX — a cryptocurrency-powered freelance market.