Mastercard and RBA Pioneer Secure CBDC-NFT Integration
Mastercard recently collaborated with the Reserve Bank of Australia (RBA) to successfully test the compatibility of a CBDC and its ability to limit its usage to approved entities.
As part of this initiative, Mastercard’s solution facilitated a pilot CBDC holder in purchasing a NFT available on the Ethereum (ETH) network, as highlighted in a recent press release from the company.
The RBA’s pilot CBDC platform securely locked a designated currency amount and generated an equivalent amount of wrapped pilot CBDC on the Ethereum blockchain.
Mastercard’s innovative approach incorporates strict controls to ensure that the pilot CBDC remains accessible, usable, and redeemable exclusively by authorized parties who have undergone Know Your Customer (KYC) verification and risk assessment conducted by licensed service providers.
The successful test transaction necessitated both the buyer’s and seller’s Ethereum wallets and the NFT marketplace smart contract to be included in an ‘allow-list’ within the platform.
Central bank digital currencies have generated considerable debate within the cryptocurrency community, with prominent developers and politicians expressing concerns over potential impacts on individual privacy and the risk of financial censorship.