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Mastercard has finalized a trial that involved wrapping central bank digital currencies (CBDCs) across various blockchains, akin to wrapped Bitcoin (wBTC) and wrapped Ether (wETH).
As per the announcement on Oct. 12, the trial was carried out in collaboration with the Reserve Bank of Australia (RBA) and the nation’s Digital Finance Cooperative Research Centre CBDC, alongside contributions from Cuscal and Mintable. In a live setting, Mastercard indicated that the solution enabled a CBDC holder to acquire a nonfungible token (NFT) listed on Ethereum. “The procedure ‘locked’ the necessary amount of a pilot CBDC on the RBA’s pilot CBDC platform and minted an equivalent quantity of wrapped pilot CBDC tokens on Ethereum,” stated the payment processor.
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“A prerequisite for 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 restricted, it effectively showcased the platform’s capability to enforce controls – even on public blockchains.”
The solution employs Mastercard’s Multi Token Network, which was launched in June 2023, merging payment technology with blockchain systems. “In collaboration with Mastercard, we have pinpointed a use case where digital currencies and NFTs can be seamlessly connected, potentially eliminating fraud and theft, preventing the loss of documentation and records, and unlocking new opportunities for commerce,” remarked Zack Burcks, CEO and founder of Mintable.
The RBA has previously indicated that an Australian dollar CBDC could facilitate intricate payment arrangements and foster innovation in the financial sector that cannot be replicated by fiat currency. However, the central bank also acknowledged that “further research” is necessary to assess the advantages.
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