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Mastercard has successfully concluded a trial in which it wrapped central bank digital currencies (CBDCs) on various blockchains, a concept akin to the way wrapped Bitcoin (wBTC) and wrapped Ether (wETH) operate.
As of the announcement on October 12, this trial was conducted in collaboration with the Reserve Bank of Australia (RBA) and Australia’s Digital Finance Cooperative Research Centre CBDC. It also involved participation from Cuscal and Mintable. In a real-world setting, Mastercard’s solution allowed a CBDC holder to purchase a nonfungible token (NFT) listed on the Ethereum blockchain. In this process, the required amount of a pilot CBDC was “locked” on the RBA’s pilot CBDC platform, and an equivalent amount of wrapped pilot CBDC tokens was created on the Ethereum network, as described by the payment processing company.
The transaction required that the Ethereum wallets of both the buyer and seller, as well as the NFT marketplace’s smart contract, were “allow-listed” within the platform. All other transfers of the wrapped pilot CBDC were blocked, effectively demonstrating the platform’s capability to implement controls, even on public blockchains.
This solution leverages Mastercard’s Multi Token Network, which was introduced in June 2023 and integrates payment technology with blockchain technology. Zack Burcks, CEO and founder of Mintable, emphasized the potential of this collaboration, stating that it could facilitate the connection between digital currencies and NFTs, potentially reducing fraud and theft, eliminating the loss of documentation and records, and opening up new possibilities for commerce.
The Reserve Bank of Australia had previously noted that a digital Australian dollar CBDC could potentially enable complex payment arrangements and foster innovation in the finance sector that can’t be easily replaced by traditional fiat currency. However, they also emphasized that further research is needed to assess the benefits of such a digital currency.
The post <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com/110142/mastercard-paves-the-way-with-promising-cbdc-wrapping-trial/">Mastercard Paves the Way with Promising CBDC Wrapping Trial</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Mastercard Paves the Way with Promising CBDC Wrapping Trial

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