Mastercard Announces Successful Wrapped CBDC Trial Results.

Mastercard has completed a trial involving wrapped CBDC (central bank digital currencies) on different blockchains, following the concept of wrapped Bitcoin (wBTC) and wrapped Ether (wETH). The trial, conducted in collaboration with the Reserve Bank of Australia (RBA) and the country’s Digital Finance Cooperative Research Centre CBDC, showcased the potential of this innovative solution.

The trial, which also saw participation from Cuscal and Mintable, aimed to explore the possibilities of using CBDCs in a live environment. Mastercard revealed that the solution allowed a CBDC owner to purchase a nonfungible token (NFT) listed on the Ethereum blockchain. The process involved “locking” the required amount of a pilot CBDC on the RBA’s CBDC platform and minting an equivalent amount of wrapped pilot CBDC tokens on Ethereum. This demonstrated the platform’s ability to implement controls, even on public blockchains.

The trial leveraged Mastercard’s Multi Token Network, which was introduced in June 2023. The network integrates payment technology with various blockchains, enabling seamless interoperability and secure transactions. The successful test transaction showcased the potential of linking digital currencies and NFTs, offering new possibilities for commerce while combating fraud and theft.

Zack Burcks, CEO and founder of Mintable expressed enthusiasm for collaborating with Mastercard, emphasizing the potential of combining digital currencies and NFTs. He stated, “Together with Mastercard, we have identified a use case whereby digital currencies and NFTs can easily be linked, potentially stamping out fraud and theft, ending the loss of documentation and records, and unleashing new possibilities for commerce.”

The RBA has previously acknowledged the potential of a CBDC for enabling complex payment arrangements and fostering innovation in the finance sector. However, the central bank also emphasized the need for further research to evaluate the benefits of introducing an Australian dollar CBDC.

Mastercard’s successful trial represents a significant step forward in exploring the potential of CBDCs and their integration with blockchain technology. Mastercard aims to facilitate secure and efficient transactions while fostering innovation in the global financial landscape by bridging the gap between traditional payment systems and digital currencies.