Dobson agrees stablecoins can coexist at an institutional level with other payments – and sees significant, specific opportunities where digital assets can play an important role.
“Where [coins like] our A$DC are going to play most notably is in venues where digital assets are the native form of transaction,” he says.
Settling a digital asset transaction through existing systems is “time consuming, expensive, uncertain [and] precisely why the major stablecoins of the world exist today – to avoid that,” Dobson says.
One key area outside the box Dobson expects stablecoin transactions will occur includes the metaverse.
“People look the metaverse today [and think] ‘oh, that's just that thing people talk about - no one knows what it is’,” he says. “But there are real transactions occurring there already.
"ANZ Worldline recently announced they are opening up and working with a customer of theirs… in the metaverse”
The more these virtual worlds develop “the more there will be a demand for a native coin, or a native means of settlement, that enables transactions to occur in the virtual world”.
Another key area in the future will be tokenised bonds and equities, according to Dobson. ANZ is already talking to a number of exchanges about the practice.
“That would allow us to settle in… almost real time,” Dobson said. “Is that better? Is it faster? Yes, it is. You need the will of the community to move forward though on that.”
As demand for tokenisation grows, an increasing number of regulatory bodies are looking into the role they can play. As more central banks look to central bank digital currencies (CBDCs), the implications for payments are vast, according to Kallman.
“I think one of the real values of a tokenised currency is that it removes that clunky clearing settlement reconciliation,” she says. “Transactions, from a payment perspective, are cleared, settled and reconciled in real time. That's a really exciting thing.”
Still, private stablecoins offer that same benefit and many of the other benefits are clearer in offshore markets.
“I think a lot of the previously highlighted use cases for CBDCs don't necessarily apply in Australia,” Kallman says. “They're not major problems here. We have a largely banked population [and] we have a really strong real time payment system.”
Whatever the method, Dobson agrees the settlement impact of digital currency is transformational – including the always-on element.
“Synchronised clearing and settlement is profound,” he says. “We’ve got 24/7 domestic markets here [in Australia] right through the New Payments Program but we don't have a 24/7 global market for payments yet.”
This “obvious step forward” allows not just for digital currencies but other forms digital assets, Dobson said – all with so-called atomic settlement.
“The point of the atomic settlement is it can occur and synchronise clearing and settlement effectively,” he says. “It can then reduce, if not eliminate, counterparty risk. And your transactions are locked and secured and settled in real time. Why wouldn’t you want to do that?”