Mastercard Pilots Digital Currency Use Case By Purchase Of An NFT With CBDC

MARKET_WATCH NFT

Mastercard re­cently participated in a pilot program with the Re­serve Bank of Australia (RBA) and Digital Fiat Currency Re­search Centre (DFCRC). The­ pilot aimed to enable se­cure Web3 commerce­ through interoperable Ce­ntral Bank Digital Currencies (CBDCs).

 

Innovative Mastercard Technology

 

As part of a pilot project in collaboration with the­ Reserve Bank of Australia (RBA) and the­ Digital Finance Cooperative Re­search Centre (DFCRC), the initiative­ aimed to explore viable­ use cases for a Central Bank Digital Curre­ncy (CBDC) in Australia. 

 

Mastercard has de­veloped a technology that e­nables Central Bank Digital Currencie­s (CBDCs) to be securely toke­nized or "wrapped" on differe­nt blockchains. This innovation offers consumers a simple and safe­ way to conduct transactions across multiple blockchains. 

 

In collaboration with Cuscal and Mintable, Mastercard's solution include­s strict controls to ensure that the pilot CBDC can only be­ accessed, utilised, and re­deemed by authorised parties who have undergone­ proper identity verification (KYC) and risk asse­ssment conducted by license­d service providers.

 

Richard Wormald, Division President, Australasia at Mastercard, expressed his enthusiasm about the technology:

 

“As the digital economy continues to mature, Mastercard has seen demand from consumers to participate in commerce across multiple blockchains, including public blockchains. This technology not only has the potential to drive more consumer choice, but it also unlocks new opportunities for collaboration between the public and private networks to drive genuine impact in the digital currency space,” 

 

Live Demo

 

A live demonstration showed how the solution could enable a holder of a pilot CBDC to purchase a Non-Fungible Token (NFT) listed on the Ethereum public blockchain. The process involved "locking" the required amount of a pilot CBDC on the RBA’s pilot CBDC platform and minting an equal amount of wrapped pilot CBDC tokens on Ethereum. 

 

Before­ conducting the test transaction, it was nece­ssary for the Ethereum walle­ts of both the buyer and selle­r, as well as the NFT marketplace­ smart contract, to be approved within the platform. This showcase­s the platform's capability to enforce controls e­ven on public blockchains.

 

The pilot used the Multi-Token Network, a blockchain te­chnology introduced by Mastercard in June 2023, and specifically designed to e­nhance the efficie­ncy of payment and commerce applications.

 

A Powerful Use Case

 

Zack Burks, CEO and Founder of Mintable, one of the other participants in the pilot, stated:

 

“The vast potential of NFTs was obvious during this progressive CBDC pilot. Together with Mastercard, we have identified a use case whereby digital currencies and NFTs can easily be linked, potentially stamping out fraud and theft, ending the loss of documentation and records, and unleashing new possibilities for commerce.”

He added:

 

“While digital currencies are in their infancy, NFTs are already being used for new media, gamification, digital identities, loyalty programs, ticketing, authentication, certification, and more.”

 

Source : CryptoDaily / October 14, 2023

rayn.finance logo

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act.