Mastercard’s CBDC pilot ventures into Ethereum and NFTs

The project secured the needed pilot CBDC on the Reserve Bank of Australia’s platform and minted matching ‘wrapped’ tokens on Ethereum.

article-image

EyeofPaul/Shutterstock, modified by Blockworks

share

Mastercard in conjunction with the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre, revealed Thursday the latest results of their CBDC pilot project. 

Notably, the pilot included a live transaction where an NFT was purchased on the Ethereum blockchain using a “wrapped” version of the CBDC, according to a statement.

Jointly developed with financial services company Cuscal and blockchain platform Mintable as part of the bank and cooperative’s research project, the tech is designed to make CBDCs interoperable across various chains.

The pilot, which places a real legal claim on the RBA, involved selected industry participants and demonstrated how a CBDC could provide payment and settlement services to Australian households and businesses.

“Mastercard has seen demand from consumers to participate in commerce across multiple blockchains, including public blockchains,” Richard Warmold, the company’s Division President of Australasia said.

“This technology not only has the potential to drive more consumer choice, but it also unlocks new opportunities for collaboration between the public and private networks to drive genuine impact in the digital currency space.”

During the live test, Ethereum wallets of both the buyer and seller were ‘allow-listed,’ demonstrating the tech’s capacity to enforce controls on public blockchains.

Securing the necessary quantity of the pilot CBDC on the RBA’s dedicated platform, the project then generated a corresponding amount of wrapped pilot CBDC tokens on Ethereum.

Authorization protocols are strict. The pilot CBDC can only be held, used and redeemed by authorized parties who have cleared Know Your Customer verifications and have been risk-assessed by licensed service providers.

The project is part of a broader strategy under Mastercard’s wider Multi-Token Network (MTN) initiative, launched in June 2023, that aims to act as a “testbed for developing live pilot applications and use cases with financial institutions, fintechs and central banks,” Blockworks previously reported.

It aligns with Mastercard’s ambition to leverage blockchain tech across an array of payment use cases to facilitate what the company is touting as the mainstream adoption of digital currencies.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million