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
- 99.3% of Bitcoin Supply in Profit, Analyst Warns of Short-Term Correction
- Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement
- ‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications
- Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model
- Bitcoin ETFs See 2025 Record Weekly Inflows of $3.2B as BTC Eyes New ATH
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
