Mastercard Announces Successful Wrapped CBDC Trial in Partnership with Reserve Bank of Australia
Mastercard has announced a successful demonstration of an innovative solution that enables the wrapping of Central Bank Digital Currencies (CBDCs) on various blockchain networks.
This solution emerged from a collaboration between Mastercard, Cuscal, and Mintable as part of a research project conducted with the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC).
The primary objective of this initiative, according to Mastercard, is to explore potential applications of a CBDC in Australia.
It incorporated stringent controls to ensure that the pilot CBDC could only be owned, utilized, and redeemed by authorized entities who had undergone Know Your Customer (KYC) verification and risk assessment by licensed service providers.
This will give consumers enhanced security and simplicity when engaging in transactions across various blockchains.
Mastercard showcased the program's demonstration in a live environment, offering insight into how it enables holders of a pilot CBDC to purchase a Non-Fungible Token (NFT) listed on the Ethereum public blockchain.
The process involved locking the required amount of pilot CBDC on the RBA's CBDC platform and generating an equivalent amount of wrapped pilot CBDC tokens on the Ethereum network.
Furthermore, this pilot program leveraged two fundamental aspects of the Multi Token Network introduced by Mastercard in June 2023.
This network provided a framework for more efficient payment and commerce applications using blockchain technology.
This includes Mastercard Crypto Credential, a system that establishes common verification standards and infrastructure for secure interactions on blockchain networks.
Additionally, it offered interoperability, enabling the
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