Mastercard has completed a trial that involves encapsulating central bank digital currencies (CBDCs) on different blockchains, similar to encapsulated Bitcoin (wBTC) and Ethereum (wETH).
According to October 12 advertisementThe trial was conducted with the Reserve Bank of Australia (RBA) and the country’s Cooperative Research Center for Digital Finance (CBDC), with Cuscal and Mintable participating. In a live environment, Mastercard said the solution allows a central bank digital currency (CBDC) holder to purchase a non-fungible token (NFT) listed on Ethereum. “The operation ‘secured’ the required amount of demo CBDC tokens on the Reserve Bank of Australia’s demo CBDC platform, and minted an equivalent amount of encapsulated demo CBDC tokens on Ethereum,” the payment processor wrote.
“One of the basic requirements for the test transaction was that the Ethereum wallets of both the buyer and seller, as well as the smart contract for the NFT market, were ‘listed’ within the platform. With all other transfers blocked, the test version of the encapsulated Central Bank Digital Currency (CBDC) successfully demonstrated the system’s capability.” It is essential to implement controls – even on public blockchains.”
The solution uses Mastercard’s Multi Token network, introduced in June 2023, which integrates payment technology with blockchain. “Together with Mastercard, we have identified a use case where digital currencies and non-fungible tokens (NFTs) can be easily linked, potentially eliminating fraud and theft, ending the loss of documents and records, and unleashing the potential of… New to trade. Founder of Mintable.
The Reserve Bank of Australia has previously stated that a CBDC in the Australian dollar would enable complex payment arrangements and innovation in the financial sector that cannot be replaced by fiat money. However, the central bank also noted that “further research” is needed to assess the benefits.
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