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Mastercard Introduced Wrapped CBDCs

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Oct 24, 2023
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3 min read
wrapped-cbdcs

Mastercard tested a new technology that would give an opportunity to use the central bank digital currencies (CBDCs) on different blockchains. The innovation might help with interconnecting CBDCs and NFTs, opening up new opportunities.

On October 12, 2023, the company showed the result of working together with Cuscal (a data management services firm) and Mintable (an NFT platform). They presented an innovation for tokenizing CBDCs on various blockchains. It is supposed to ensure the transactions’ safety and improve interoperability. 

This development came from a partnership with the Australian financial institutions that are working on the country’s CBDC pilot project.

During a presentation, the corporation showed that its innovation allows the use of CBDC tokens for purchasing NFTs on the Ethereum blockchain. To start off, the technology locked the necessary amount of CBDC tokens within their native platform and then generated wrapped CBDC tokens on Ethereum. To make sure the operation was secure, the wallets involved and the smart contract address were approved in advance. This achievement shows that the platform can enforce rules and regulations, even when it is used on public blockchains. In other words, it showcases that the platform can make sure things are done correctly and securely, even in a public and open digital environment.

Additionally, Mastercard is now working on the Multi-Token Network. It holds a critical role in the company's broader plan to employ blockchain in more diverse cases and get a wider audience to use it. The network is designed to facilitate reliable and efficient transactions within the blockchain ecosystems, with a focus on regulatory compliance, consumer protection, and broad use cases that extend beyond payments, such as identity management and supply chain tracking.

Previously, the company announced its plans to carry out more research in the crypto-related sphere and presented its Web3 solution.

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