Mastercard, RBA and Cuscal trial CBDC integration with Ethereum-based NFTs
Investing.com | Editor Ambhini Aishwarya
Published Oct 13, 2023 06:55AM ET
Mastercard (NYSE:MA), the Reserve Bank of Australia (RBA), and Australian payment services company Cuscal have successfully trialed the integration of central bank digital currencies (CBDCs) with Ethereum-based non-fungible tokens (NFTs) on Mastercard's Multi Token Network.
The trial, which began in June 2023, employed a wrapped CBDC solution. The process involved locking a pilot CBDC amount on the RBA’s platform and minting an equivalent of wrapped pilot CBDC tokens on Ethereum. This procedure was carried out by "allow-listing" Ethereum wallets of the buyer, seller, and NFT marketplace smart contract, permitting only specific transactions on public blockchains.
On Thursday, Richard Wormald, Mastercard's Australasia President, confirmed the successful trial. He highlighted that this venture was in response to growing consumer demand and demonstrated commerce across multiple blockchains. The procedure involved locking the necessary CBDC amount on RBA's platform and minting wrapped tokens on Ethereum while maintaining necessary controls throughout.
The compliance aspect of the operation was ensured through Mastercard's Multi Token Network and Crypto Credential offerings. These emphasized verification standards and scalable interoperability. The project also saw involvement from Australian firms Cuscal and Mintable.
Mintable's CEO Zack Burcks views this CBDC wrapping technology as a means to eliminate fraud, end loss of documentation, and create new commerce opportunities. The RBA echoes this sentiment, believing that an Australian dollar CBDC could foster complex payment arrangements and enhance transaction speed, security, and interoperability in finance, thereby expanding the utility of digital currencies.
The trial showcased Mastercard's ability to enable a holder of a pilot CBDC to transact on the public Ethereum blockchain for purchasing NFTs from an NFT marketplace.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.