Mastercard Completes Trial with Wrapped CBDCs
Mastercard has recently announced the successful completion of a trial that involved wrapping central bank digital currencies (CBDCs) on different blockchains. This concept is similar to the popular wrapped Bitcoin (wBTC) and wrapped Ether (wETH) tokens.
Collaboration with Reserve Bank of Australia
The trial, conducted in collaboration with the Reserve Bank of Australia (RBA) and the country's Digital Finance Cooperative Research Centre CBDC, included the participation of Cuscal and Mintable. The trial took place in a live environment and showcased how a CBDC owner could purchase a nonfungible token (NFT) listed on Ethereum.
Minting Wrapped Pilot CBDC Tokens
Mastercard explained that the process involved "locking" a specific amount of a pilot CBDC on the RBA's pilot CBDC platform. This action subsequently minted an equivalent amount of wrapped pilot CBDC tokens on the Ethereum blockchain. The solution successfully demonstrated its ability to implement controls, even on public blockchains.
Integration of Payment Technology with Blockchains
The trial utilized Mastercard's Multi Token Network, which was introduced in June 2023. This network integrates Mastercard's payment technology with various blockchains, providing seamless connectivity and facilitating transactions involving digital currencies and NFTs.
Stamping Out Fraud and Unleashing New Possibilities
Zack Burcks, CEO and founder of Mintable, expressed excitement about the collaboration, stating that it has the potential to link digital currencies and NFTs, potentially eliminating fraud and theft. This innovation could also put an end to the loss of documentation and records, opening up new possibilities for commerce.
Potential Benefits of an Australian Dollar CBDC
The RBA has previously mentioned that introducing an Australian dollar CBDC could lead to complex payment arrangements and foster innovation in the finance sector that cannot be achieved with fiat money alone. However, further research is necessary to evaluate the benefits of such a digital currency.
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