Mastercard completes trial with Reserve Bank of Australia, CBDC tokenizes on Ethereum to purchase NFTs

Mastercard announced that it has completed a CBDC pilot program with the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre. The program allows authorized parties with KYC clearance to hold, transact, and redeem CBDC. Mastercard also utilizes CBDC wrapping technology to transfer CBDC from a private chain to Ethereum for purchasing NFTs on the platform.

Mastercard Deepens CBDC Technology Engagement

Mastercard has shown great interest in Central Bank Digital Currencies (CBDCs) for quite some time. According to previous reports, Mastercard announced the Multi-Token Network (MTN) project at the end of June. The platform allows for various digital tokens such as CBDCs issued by central banks, cryptocurrencies, stablecoins issued by financial institutions, and tokenized deposits on the payment side. Additionally, it includes digital tokens on the asset side like carbon credits NFTs, securities, and bonds.

In August, Mastercard further announced its CBDC partner program, attracting companies like Ripple and Consensys to participate. The goal is to continue driving innovation in the central bank and CBDC value chain without disrupting existing payment systems.

Mastercard Reports Successful Trial with Reserve Bank of Australia

The Mastercard team has developed technology to wrap CBDCs and transfer them to other public blockchains. Since most central banks prefer issuing on private chains and then moving to public chains for transactions, this approach allows CBDCs to be traded and used in a wider range of applications.

According to The Block, the Australian financial services company Cuscal and blockchain technology company Mintable collaborated with Mastercard on a pilot project with the Reserve Bank of Australia. The project successfully tested the holding, using, and redeeming of CBDC by authorized parties who have gone through the "Know Your Customer" (KYC) protocol. Additionally, it allowed holders to purchase Ethereum-based NFTs by minting an equivalent amount of wrapped tokens on Ethereum.

Richard Wormald, President of Mastercard's Australian division, stated in a press release:

As the digital economy continues to mature, Mastercard sees the business need for consumer engagement across multiple blockchains, including public ones. This technology unlocks new opportunities for collaboration between public and private networks to drive real impact in the digital currency space.