Digital Assets: Mastercard and Reserve Bank Of Australia Conduct Successful Pilot Of CBDC On Multiple Blockchains

October 13, 2023 | Digital Assets, News

By enabling people to easily move digital currencies on-demand, via Mastercard’s trusted network, more consumers could participate in crypto ecosystems using reputable and reliable forms of money.” –  Richard Wormald, Division President, Australasia at Mastercard.

Mastercard (NYSE: MA) recently participated in a groundbreaking initiative, the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre’s (DFCRC) central bank digital currency (CBDC) pilot project. This venture explored potential use cases for CBDC in Australia. During the project, Mastercard unveiled innovative technology that facilitates the interoperability of CBDCs with various blockchains, ensuring secure utilization by authorized entities.

One major achievement is the successful demonstration of a solution that tokenizes CBDCs, allowing them to be integrated (wrapped) with different blockchains. This innovation offers consumers a fresh opportunity to engage in commerce across multiple blockchains while enhancing security and ease of use.

Developed in collaboration with Cuscal and Mintable as part of the RBA and DFCRC research project, this solution is underpinned by strict controls. These controls ensure that the pilot CBDC can only be held, used, and redeemed by authorized parties who have undergone Know Your Customer (KYC) verification and risk assessment by licensed service providers.

According to Richard Wormald, Division President, Australasia at Mastercard, the technology met consumer demands for participating in commerce across various blockchains, both public and private. Moreover, it fostered collaboration between these networks, promising a substantial impact in the digital currency realm.

In a live environment demonstration, the technology enabled the purchase of a non-fungible token (NFT) on the Ethereum public blockchain using the pilot CBDC. This showcased the system’s ability to implement controls even on public blockchains, demonstrating its versatility.

This development is closely tied to the Multi Token Network introduced by Mastercard, offering efficient payment and commerce applications via blockchain technology. It promotes interoperability and common verification standards, ensuring trusted interactions on blockchain networks.

Mastercard’s strategy to expand the use of blockchain technology in various payment contexts is well underway, with Multi Token Network currently in beta and undergoing trials with select financial institutions worldwide. It has the potential to boost interoperability and facilitate easy movement of digital currencies via Mastercard’s trusted network, opening doors to greater participation in crypto ecosystems.

Related Story:  Mastercard Buys Stake In MTN’s Fintech Unit For Undisclosed Amount

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…