A significant milestone in Australia’s cryptocurrency landscape was achieved recently when a customer in Sydney made the nation’s inaugural retail payment using the Australian dollar-backed stablecoin, AUDD, via the Base blockchain. This historic transaction took place on May 21 and was notable for its speed, as it settled almost instantly on-chain without the need for traditional banking systems, card networks, or payment processors.
The customer facilitated the purchase of laksa at a Malaysian takeaway restaurant using a convenient tap-to-pay method. The payment could be completed using a debit card, smartphone, or QR code linked to a digital wallet, mirroring the experience of standard debit transactions. However, unlike traditional payments, the settlement of this transaction occurred entirely on-chain through the AUDD stablecoin.
AUDD is issued by AUDC Pty Ltd and is supported by reserves held in Australian banks, functioning under Australian Financial Services Licence number 700123. This stablecoin operates across multiple blockchain networks, including Ethereum, Solana, Stellar, Hedera, and XDC.
The merchant involved in this transaction received payment directly through the blockchain, giving them options to either keep the funds in stablecoin or convert them back into Australian dollars. A noteworthy advantage of this transaction was its ability to bypass the usual Visa and card-processing fees often associated with retail transactions.
The completion of this transaction has shed light on Australia’s established regulatory framework for stablecoins, which allows licensed issuers like AUDC Pty Ltd to operate within the existing financial services laws. In contrast, the situation in the United States is markedly different, where the legislation surrounding stablecoins remains ambiguous and not yet resolved in Congress.
Industry experts have pointed out that this event highlights the potential of blockchain technologies, like Base, to facilitate real-time retail payments while significantly reducing costs and minimizing dependence on traditional financial intermediaries.
In summary, the successful completion of this first retail transaction with AUDD represents an important step forward in the integration of stablecoins into everyday commerce in Australia, demonstrating both the efficiency of blockchain technology and the potential for a more streamlined payment process in the future.
