Mastercard has created a solution that allows CBDCs to be tokenized on multiple blockchains and controls which wallets can receive the wrapped tokens.
Mastercard Announced Demonstration
Master announced the successful demonstration of a central bank digital currency (CBDC) technology that integrates CBDCs with multiple blockchain networks.
To improve consumer convenience and transactional security, the technology aims to facilitate the tokenization, or “wrapping,” of CBDCs onto various blockchain networks.
CBDC pilot program in Australia
New Mastercard solution was created in collaboration with Cuscal and Mintable. It was tested in collaboration with the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) as part of the CBDC project.
RBA’s pilot project with the DFCRC sought to investigate the diverse applications of a CBDC in Australia by investigating novel payment and settlement solutions for the country’s households and businesses.
A Mastercard demonstration showed a CBDC holder purchasing a non-fungible token (NFT) on the Ethereum public blockchain.
The system ensured that a specific amount of CBDC was “locked” on the RBA’s platform before minting an equivalent amount of wrapped CBDC tokens on Ethereum, demonstrating interoperability across different blockchains.
Furthermore, the platform can impose transactional control on public blockchain networks by limiting the wrapped CBDC to only pre-approved “allow-listed” Ethereum wallets.
The Multi-Token Network
Technology is a component of Mastercard’s Multi Token Network initiative, which was launched in 2023.
Multi Token Network, which is currently in beta testing, is part of the company’s strategy to incorporate blockchain technology into various payment scenarios.
Network’s goal is to improve blockchain-powered payment and commerce solutions.
It has a Crypto Credential feature to help with trust in blockchain interactions and scalable interoperability across different tokens and networks.
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