Mastercard Successfully Trials Blockchain Integration with Central Bank Digital Currencies
Summary:
Mastercard has successfully conducted a trial of wrapping central bank digital currencies (CBDCs) on multiple blockchains, partnering with the Reserve Bank of Australia and others. The tested solution allowed a CBDC holder to buy an Ethereum-listed nonfungible token (NFT), marking a new milestone in interlinking digital currencies and NFTs. This could potentially eliminate fraud, prevent loss of documents and records, and open up new commercial possibilities. Further research is required to assess the benefits, as suggested by the Reserve Bank of Australia.
Mastercard has successfully completed a pilot program, mimicking the creation of wrapped central bank digital currencies (CBDCs) on multiple blockchains, in a way akin to wrapped Bitcoin (wBTC) and wrapped Ether (wETH). Declared on October 12, the trial was carried out in partnership with the Reserve Bank of Australia (RBA) and Australia's Digital Finance Cooperative Research Centre CBDC, with Cuscal and Mintable actively participating. Mastercard stated that the experimented solution enabled a CBDC holder to buy a nonfungible token (NFT) that's up for grabs on the Ethereum platform. The procedure involved the necessary quantity of the experimental CBDC being "secured" on the RBA's trial CBDC platform and an equal amount of wrapped trial CBDC tokens being generated on Ethereum, according to the payment giant. The platform was exhibited to have an effective control mechanism, overseen by the requirement that the Ethereum wallets of both the buyer and seller, as well as the NFT marketplace smart contract, were pre-approved on the platform. The solution leverages Mastercard's Multi Token Network, launched in June 2023, which amalgamates payment technology with blockchains. "In collaboration with Mastercard, we've discovered a plausible use case in which digital currencies and NFTs can be seamlessly linked, potentially eliminating fraud and theft, stopping the misplacement of documents and records, and unlocking new avenues for commerce," remarked Zack Burcks, CEO and founder of Mintable.The RBA previously conveyed that an Australian dollar CBDC could potentially facilitate sophisticated payment structures and foster innovation in the finance sector that fiat currency could not replace. However, the central bank stated that further studies are needed to assess the advantages.Magazine: The potential of zero-knowledge proofs extends from voting to finance.
Published At
10/12/2023 3:00:00 PM
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