Mastercard has proudly unveiled the results of a pioneering trial involving wrapped central bank digital currencies (CBDCs) across various blockchains. This endeavor echoes the mechanisms behind wrapped Bitcoin (wBTC) and wrapped Ether (wETH).
This groundbreaking experiment, unveiled on Oct. 12, saw Mastercard partnering with the Reserve Bank of Australia (RBA) and Australia’s Digital Finance Cooperative Research Centre CBDC. Notably, Cuscal and Mintable also played vital roles. In practical terms, the trial enabled a CBDC holder to acquire an Ethereum-listed nonfungible token (NFT). To facilitate this, the necessary pilot CBDC amount was “locked” on the RBA’s platform, followed by minting a similar volume of wrapped pilot CBDC tokens on the Ethereum network.
Mastercard emphasized the stringent controls put in place for the trial: “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 underpinning technology is the brainchild of Mastercard’s Multi Token Network, launched earlier in June 2023, seamlessly merging payment tech with blockchain capabilities. Zack Burcks, the visionary CEO and founder of Mintable remarked, “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.”
While the RBA has hinted at the Australian dollar CBDC’s potential to revolutionize complex financial transactions and foster innovation, it underscores the need for continued research to ascertain its full benefits.
Secret3 is committed to responsible and ethical reporting.