Chrono Tech Launches Australian Dollar Stablecoin in Spite of ‘Big Four’ Banks

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, may be redeemed 1:1 for Australian {dollars} held by a licensed Australian financial institution. However, as Chrono Tech’s CEO, Sergei Sergienko, reveals, securing a banking accomplice was not straightforward.

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 ‘Big Four’ banks nonetheless hesitant to accomplice with crypto corporations

Sergienko mentioned that “the hardest challenge” concerned within the stablecoin’s growth and launch was discovering a financial institution that might maintain it in reserve:

“There was discussion with a couple of the big four [Australian banks], and everybody in their research teams were excited about it, but nobody wanted to take the first step.”

Despite getting turned down by Australia’s oligopoly, Chrono Tech shortly discovered that many smaller banks have been taking a look at blockchain as an thrilling area of interest:

“The new banks are very receptive towards crypto, because as they struggle to gather adoption and [try] to switch people to them, they are looking at crypto as a niche of sorts. They don’t 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 toes.

AUD stablecoin to streamline worldwide commerce

Sergienko instructed Cointelegraph that he hopes the fiat-backed ERC-20 token will turn into a well-liked means for Australians to switch cash and make funds, each domestically and internationally:

“The ideal use case for it is when somebody pay for something or gets money in an account in AUD, and they want to send it their friends, or pay for something – a service in the U.S. or whatever – they just click a button and the guy on the other end will receive in a couple of Ethereum blocks.”

He states, “What I would like to see happening is AUD converted into AUDT, AUDT converted into USDC or USDT, [and] then converted into USD – all seamless and integrated. That’s what we are striving for.”

Chrono Tech transitions from ‘Labour Hour Token’ to stablecoin

The firm initially started work on one thing referred to as a ‘Labour Hour Token’ (LHT) in 2019. That was a token backed by legally-binding contractual obligation to offer real-world labor hours.

However, they shifted to the creation of an AUD-backed stablecoin roughly 12 months in the past:

“It became apparent that [LHT] was too hard for people to understand, so we thought a stablecoin based on AUD would be more appropriate, since we are based in Australia.”

Sergienko famous that Chrono Tech encountered few regulatory challenges in issuing the stablecoin, stating that it “definitely was not difficult” to get the licensing required to transform between cryptocurrencies and fiat forex.

AUDT was launched initially of March and is built-in into the Chrono Tech ecosystem. Chrono Tech’s platform additionally consists of PaymentX – an automatic cryptocurrency payroll resolution for people and companies, TimeX – a Plasma-based hybrid alternate, and LaborX – a cryptocurrency-powered freelance market.

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