Mastercard Trials CBDC-NFT Purchase Integration in Australia

Mastercard has taken a progressive step in digital commerce by successfully trialing an integration of central bank digital currency (CBDC) 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 foster interoperability among different blockchains and bolster the security of such interactions.

The pilot project demonstrated a solution that enables the tokenization of CBDCs on various blockchains, aiming to expand commerce options while ensuring security. The showcased method allowed the use of a pilot CBDC to buy an NFT on Ethereum, by locking the CBDC value and minting a corresponding amount on the Ethereum platform.

Mastercard has consistently showcased its commitment to the crypto realm. In August, the company initiated a forum designed for crypto enthusiasts to deliberate on CBDCs.

In September, Oobit introduced a “Tap and Pay” solution to facilitate crypto payments at any point of sale accepting Visa or MasterCard.

However, recent reports indicate Mastercard’s decision to conclude its crypto card partnership with Binance for select nations.

Australia’s central bank, after a year-long research project, announced that the decision to introduce a CBDC is likely years away due to unresolved challenges.

Despite recognizing the potential benefits of CBDCs, but the report highlighted the need for continued research, addressing issues such as cryptographic key management, integration complexities, and unresolved concerns about user privacy.