Mastercard has taken a progressive step into digital commerce by successfully testing a central bank digital currency (CBDC) integration with non-fungible token (NFT) purchases in Australia.
This ambitious project, carried out in conjunction with the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre, aims to promote interoperability between different blockchains and reinforce the security of these interactions.
The pilot project demonstrated a solution that enables CBDC tokenization across multiple blockchains, aiming to expand trading options while ensuring security. The method shown allowed the use of a pilot CBDC to purchase an NFT on Ethereum, locking the value of the CBDC and minting the corresponding amount on the Ethereum platform.
Mastercard’s Crypto Play
Mastercard has consistently shown its commitment to the cryptocurrency space. In August, the company started a forum designed for cryptocurrency enthusiasts to deliberate on CBDCs.
In September, Oobit introduced a “Tap and Pay” solution to facilitate crypto payments at any point of sale that accepts Visa or MasterCard.
However, recent reports indicate Mastercard’s decision to end its crypto card partnership with Binance for select countries.
Australia’s CBDC is years away
Australia’s central bank, after a year-long research project, announced that a decision to introduce a CBDC is likely years away due to unresolved challenges.
Despite recognizing the potential benefits of CBDCs, the report highlighted the need for continued research, addressing issues such as cryptographic key management, integration complexities, and unresolved concerns about user privacy.
