Mastercard Introduces CBDC Tokenization Solution
Mastercard has unveiled a new solution that allows central bank digital currencies (CBDCs) to be tokenized or wrapped onto different blockchains. This innovation offers consumers the opportunity to engage in commerce across multiple blockchains with enhanced security and convenience.
Consumer Demand for Participation in Multiple Blockchains
Richard Wormald, President of Mastercard Australasia, emphasized the growing demand from consumers to participate in commerce across various blockchains, including public ones. He highlighted the potential of this technology to provide consumers with more choices and foster collaboration between public and private networks in the digital currency space.
Partnership for CBDC Use Cases Exploration
Mastercard collaborated with leading payment and data services provider Cuscal and NFTs-as-a-service provider Mintable to develop this solution. The project is part of the Reserve Bank of Australia (RBA) and Digital Finance CRC’s research initiative to explore potential use cases for CBDCs in Australia.
Demonstration of the Solution
In a live environment, Mastercard showcased how the solution enables holders of pilot CBDCs to purchase NFTs listed on the Ethereum public blockchain. The process involves “locking” the required amount of a pilot CBDC on the RBA’s platform and minting an equivalent amount of wrapped pilot CBDC tokens on Ethereum.
Hot Take: Mastercard Facilitates Cross-Blockchain Commerce
Mastercard’s new solution empowers consumers to engage in commerce across multiple blockchains, addressing their increasing demand for participation in various blockchain networks. By tokenizing CBDCs onto different blockchains, Mastercard enhances security and ease of transactions. This development not only provides consumers with more options but also paves the way for collaboration between public and private networks in the digital currency realm. With partnerships in place and successful demonstrations, Mastercard is actively exploring the potential use cases of CBDCs in Australia. This breakthrough aligns with the evolving digital economy and offers a glimpse into the future of cross-blockchain commerce.
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