Mastercard Announces Successful Wrapped CBDC Trial Results – Mastercard has successfully concluded a trial that involved securing central bank digital currencies (CBDCs) on various blockchain networks, akin to how wrapped Bitcoin (wBTC) and wrapped Ether (wETH) function. As of the October 12 announcement, this trial was carried out in collaboration with the Reserve Bank of Australia (RBA), the Digital Finance Cooperative Research Centre, and involved the active participation of Cuscal and Mintable.
In a real-world setting, Mastercard’s solution enabled the owner of a CBDC to buy a nonfungible token (NFT) listed on the Ethereum network. “The process ‘locked’ the required amount of a pilot CBDC on the RBA’s pilot CBDC platform and minted an equivalent amount of wrapped pilot CBDC tokens on Ethereum,” the payment processor wrote.
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“A pre-requisite of the test transaction was that the Ethereum wallets of both the buyer and seller, as well as the NFT marketplace smart contract, were ‘allow-listed’ within the platform. With all other transfers of the wrapped pilot CBDC blocked, it successfully demonstrated the platform’s ability to implement controls – even on public blockchains.”
The solution utilizes Mastercard’s Multi Token Network, introduced in June 2023, integrating payment technology with blockchains. “Together with Mastercard, we have identified a use case whereby digital currencies and NFTs can easily be linked, potentially stamping out fraud and theft, ending the loss of documentation and records, and unleashing new possibilities for commerce,” commented Zack Burcks, CEO and founder of Mintable.
The Reserve Bank of Australia (RBA) has previously expressed that an Australian dollar CBDC could unlock intricate payment structures and foster financial sector innovation that cannot be replicated by traditional fiat currency. Nonetheless, the central bank has acknowledged the need for further research to assess these advantages.