Mastercard Pilots Digital Currency Use Case
Mastercard has developed a technology that allows Central Bank Digital Currencies (CBDCs) to be securely tokenized or “wrapped” on different blockchains, enabling secure Web3 commerce. The pilot project, in collaboration with the Reserve Bank of Australia (RBA) and Digital Finance Cooperative Research Centre (DFCRC), aimed to explore the use cases of a Central Bank Digital Currency (CBDC) in Australia. Mastercard’s solution, in collaboration with Cuscal and Mintable, includes strict controls to ensure that the pilot CBDC can only be accessed, used, and redeemed by authorized parties who have undergone proper KYC and risk assessment.
A live demonstration demonstrated how a pilot CBDC can be used to purchase a Non-Fungible Token (NFT) on the Ethereum public blockchain. The process involved locking the required amount on the RBA’s platform and minting an equal amount of wrapped CBDC tokens. The platform’s ability to enforce controls even on public blockchains was demonstrated. The pilot used the Multi-Token Network, a blockchain technology introduced by Mastercard in June 2023, to enhance payment and commerce applications.
(With inputs from Shikha Singh)
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