Two companies have completed a foreign exchange transfer using eAUD, the digital currency being used in the Reserve Bank’s central bank digital currency pilot, converting it to USDC stablecoin. The counterparties involved in the first FX transaction using an Australian CBDC were DigitalX and fund manager TAF Capital, and the trade was handled by fintech Canvas Digital, which is a participant in the pilot. The RBA launched the pilot last year, working with the Digital Finance Cooperative Research Centre. They chose 14 use cases proposed by a range of parties, including ANZ, Commonwealth Bank, Mastercard, Cuscal, Monoova, Australian Bonds Exchange, Canvas Digital, digi.cash, Fame Capital, Unizon and Imperium Markets.  The projects cover offline payments, tokenised foreign exchange settlement, custody, Web3 commerce, tokenised bills, corporate bond settlements, livestock auctions and automation of goods and services tax lodgement. Last month, ANZ reported that it worked with Grollo Carbon Ventures to trade Australian Carbon Credit Units. ANZ tokenised ACCUs and issued stablecoin, allowing GCV to purchase tokenised ACCUs with settlement occurring via a smart contract. In the latest transaction, Canvas reported that the trades were settled instantaneously, demonstrating one of the benefits of a CBDC – real-time 24/7 international remittance. Canvas said it is operating a CBDC exchange on a “privacy-focused Layer 2 blockchain”. Canvas Digital chief executive David Lavecky said in a statement: “The eAUD holds the potential to address crucial challenges in both FX and international emittance markets, such as improving transaction times, reducing fees and providing more open access.”  eAUD is a general purpose CBDC issued as a liability of the Reserve Bank for use in the “real world applications” of the pilot. eAUD is denominated in Australian dollars and the smallest denomination is one cent. The RBA and DFCRC will publish a project report at the end of June.