Mastercard, the global payment giant, has successfully participated in a central bank digital currency (CBDC) pilot project in Australia, demonstrating its technology that enables CBDC transactions on the public Ethereum blockchain.
Mastercard’s CBDC Solution
The pilot project was conducted in collaboration with the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC), as part of a research initiative to explore potential use cases for a CBDC in Australia.
Mastercard’s solution leverages its Multi Token Network and Crypto Credential offerings, which are designed to enable more efficient payment and commerce applications using blockchain technology. The solution also includes controls that ensure that the pilot CBDC can be held, used, and redeemed only by authorized parties that have been verified and risk assessed by licensed service providers.
Mastercard’s participation in the RBA and DFCRC’s CBDC pilot project explored potential use cases for a CBDC in Australia.
CBDC Meets NFT
One of the use cases that Mastercard demonstrated in a live environment was how its technology could enable the holder of a pilot CBDC to purchase a non-fungible token (NFT) listed on the Ethereum public blockchain. NFTs are unique digital assets that represent ownership of various forms of art, collectibles, or media.
To enable this, the solution locked the required amount of a pilot CBDC on the RBA’s pilot CBDC platform and minted an equivalent amount of wrapped pilot CBDC tokens on Ethereum. A prerequisite of 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 blocked, it successfully demonstrated the platform’s ability to implement controls even on public blockchains.
Mastercard showcased how its technology could allow a holder of a pilot CBDC to purchase an NFT listed on the public Ethereum blockchain.
Interoperability and Innovation
The pilot project showcased Mastercard’s capabilities to enable interoperability between private and public blockchains, as well as between different types of digital currencies and assets. This could provide consumers with more choice and flexibility to participate in commerce across multiple blockchains with increased security and ease.
“As the digital economy continues to mature, Mastercard has seen demand from consumers to participate in commerce across multiple blockchains, including public blockchains. This technology not only has the potential to drive more consumer choice, but it also unlocks new opportunities for collaboration between the public and private networks to drive genuine impact in the digital currency space,” said Richard Wormald, Division President, Australasia at Mastercard.
The pilot project also involved Australian payment company Cuscal and the NFT marketplace Mintable, demonstrating Mastercard’s commitment to partner with local players and foster innovation in the digital currency space.
Mastercard demonstrated its capabilities to enable interoperability between private and public blockchains, as well as between different types of digital currencies and assets.
