Mastercard announced that it has effectively demonstrated the capabilities of a new solution that allows CBDCs to be tokenized, or “wrapped,” onto various blockchains to give customers a safer and more convenient way to transact across multiple blockchains in Australia.
The solution is created as part of a research initiative by RBA and DFCRC to investigate possible applications for a CBDC in Australia, in collaboration with Cuscal and Mintable.
It includes safeguards that guarantee the pilot CBDC can only be held, used, and redeemed by authorized parties who have had their risk assessed and Know Your Customer (KYC) verified by licensed service providers.
Richard Wormald, Division President, Australasia at Mastercard, said, “As the digital economy continues to mature, Mastercard has seen demand from consumers to participate in commerce across multiple blockchains, including public blockchains.”
Mastercard gave an example of how the solution may make it possible for the owner of a pilot CBDC to buy an NFT that is listed on the Ethereum public blockchain. The procedure “locked” the necessary quantity of a pilot CBDC on the RBA’s pilot CBDC platform and minted an equal amount of wrapped pilot CBDC tokens on Ethereum.
Mastercard’s Multi-Token Network, which is presently in beta testing with a few international financial institutions, aims to increase the usage of blockchain technology across payment use cases. It is presently being piloted with a few global financial institutions and will enable regulated companies to benefit from the capabilities found in digital assets.
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