Mastercard creates technology to tokenize CBDCs on multiple blockchains

Mastercard has developed a solution that allows CBDCs to be tokenized on multiple blockchains, with the ability to control which wallets are allowed to receive wrapped tokens.

Mastercard has announced a successful demonstration of central bank digital currency (CBDC) technology that seeks to integrate CBDCs with multiple blockchain networks, according to a press release.

The technology aims to facilitate the tokenization or “wrapping” of CBDCs onto different blockchain networks to improve consumer convenience and transaction security.

Australian CBDC pilot

Mastercard’s new solution was developed in partnership with Cuscal and Mintable. It was tested under the experimental CBDC project of the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC).

The RBA and DFCRC pilot aims to investigate diverse applications of CBDC in Australia by exploring novel payment and settlement solutions for Australian households and businesses.

Mastercard’s demonstration highlighted a CBDC holder executing a purchase of a non-fungible token (NFT) on the Ethereum public blockchain. The system ensured that a specific CBDC amount was “locked” on the RBA platform, and an equivalent amount of wrapped CBDC tokens were subsequently minted on Ethereum, demonstrating interoperability between different blockchains.

Additionally, the platform could implement transaction controls on public blockchain networks by restricting wrapped CBDCs to only be sent to pre-approved “allowlisted” Ethereum wallets.

Multi-token network

The technology is part of Mastercard’s plans for a multi-token network to be launched in 2023.

Mastercard’s multi-token network, currently in beta testing, is part of the company’s strategy to integrate blockchain technology into various payment scenarios.

The network aims to enhance blockchain-based payment and commerce solutions. It includes cryptographic credential capabilities to facilitate trust in blockchain interactions and scalable interoperability across a variety of tokens and networks. #万事达卡  #CBDC