Utility billing and payment services provider Novatti is launching a new Australian dollar (AUD)-backed stablecoin known as the Novatti AUD Utility Token on the Stellar Network. As the platform’s tokens are tied to Australian dollars, all units in circulation will have an equal, matching reserve of AUD, allowing investors to use the currency freely without having to worry about price fluctuations. Novatti will hold the coin’s dollar reserves through the company’s licensed subsidiary, Flexewallet Pty Ltd., which is also registered as a remittance network provider with the Australian Transaction Reports and Analysis Centre (AUSTRAC). The service is currently in beta but is scheduled for an official launch on November 19, 2018. This is the second stablecoin to be tied to AUD, the first being Emparta. The blockchain employment platform recently formed a partnership with Bit Trade, one of Australia’s oldest digital currency exchanges, and announced they would design and launch the stablecoin sometime in 2019. Bit Trade’s managing director Jonathon Miller commented that the currency will act as a “buffer” against the price swings commonly associated with digital entities like bitcoin and ether. “Stablecoins solve one of the principal issues that may drive investors seeking steady returns and merchants that currently accept traditional currency away from digital currencies: volatility,” he said. “We believe s...
