Mastercard and Australia’s RBA Triumph in Wrapped CBDC Trial

Mastercard has successfully concluded a trial with the Reserve Bank of Australia (RBA). This trial centered around wrapping central bank digital currencies (CBDCs) on multiple blockchain platforms. This concept mirrors the approach of wrapped Bitcoin and Ether on Ethereum. Consequently, the experiment aimed to showcase the seamless integration of a pilot CBDC within the Ethereum blockchain.

Moreover, Mastercard elaborated that this method effectively “locked” a specific amount of the CBDC on the RBA’s platform. Additionally, an equivalent amount of the wrapped CBDC was minted on Ethereum. Hence, this approach facilitated a live transaction where a CBDC owner could directly purchase a nonfungible token (NFT) listed on Ethereum.

Mastercard Tests Ethereum for Secure Transactions

Highlighting the nuances of the test, Mastercard noted that the Ethereum wallets involved in the transaction, including the NFT marketplace’s smart contract, were on an “allow list”. This deliberate restriction showcased the ability of the platform to implement controls even on public blockchains. A successful demonstration of a controlled, transparent, and seamless CBDC transaction on a decentralized platform.

Furthermore, this initiative is a product of Mastercard’s Multi Token Network. This platform, launched in June 2023, bridges conventional payment technologies and the emerging blockchain world. Zack Burcks, the CEO and founder of Mintable, commented on the development. He mentioned that alongside Mastercard, a unique use case emerged. This collaboration can link digital currencies with NFTs, potentially enhancing transparency and curbing fraud.

Read Also: Mastercard To Build A Blockchain App Store for Regulated Financial Apps

Mastercard Ends Alliance with Binance Exchange

The RBA has been vocal about the potential benefits of an Australian dollar CBDC. It believes that such an innovation could revolutionize complex payment systems. However, the bank also believes in proceeding cautiously, emphasizing the need for more research to assess the true advantages.

According to Coingape’s recent coverage, Mastercard has pulled the plug on its alliance with Binance, a prominent cryptocurrency exchange. This decision subsequently impacted four crypto card programs in Argentina, Brazil, Colombia, and Bahrain, ceasing their operations on September 22. The underlying reason remains veiled, but speculations point toward regulatory hurdles faced by Binance in the US.

Read Also: US SEC And Binance Submits Joint Status Report