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Reserve Bank of Australia and Mastercard Announce Successful CBDC Test
Summary
- Mastercard and the Reserve Bank of Australia have completed a CBDC trial.
- The test, which included several partners, leveraged Ethereum and NFT marketplace smart contracts.
- Australia is exploring several use cases for CDBCs, including cross-border transactions.
The Reserve Bank of Australia (RBA) and Mastercard have completed a trial that included the tokenisation of central bank digital currencies (CBDCs). The trial was conducted in collaboration with payments platform Cuscal, digital marketplace Mintable, and the Digital Finance Cooperative Research Centre (DFCRC).
RBA Trial Involved Ethereum Wallets
Mastercard said it was important that the Ethereum (ETH) wallets of both the buyer and seller, together with the NFT marketplace smart contract, could access the platform.
Mastercard noted,
With all other transfers of the wrapped pilot CBDC blocked, it successfully demonstrated the platform’s ability to implement controls – even on public blockchains.
Mastercard
The pilot project utilised two core elements of the Multi Token Network, including the Mastercard Crypto Credential, which establishes a set of standardised verification criteria and infrastructure for ensuring trusted interactions within blockchain networks.
As per Mastercard, the trial showcased the functionality of the tokenisation (or “wrapping”) of CBDCs on various blockchains. This offers consumers a new way of interacting across multiple blockchains, offering enhanced security and convenience.
Potential Uses Cases for CBCDs in Australia
The RBA envisions a range of use cases that span a spectrum of issues that CBDCs might potentially resolve, including those related to utilising CBDCs for the immediate settlement of transactions involving tokenised assets.
Richard Wormald, Division President, Australasia at Mastercard, stated,
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.
Richard Wormald According to Wormald, the project proves that the solutions within the Multi Token Network can significantly enhance blockchain interoperability in a secure way. These solutions allow individuals to conveniently transfer digital currencies using Mastercard’s network, making it more convenient for consumers to engage with reputable and reliable cryptocurrencies.
He said this approach offers the advantages of programmability, transparency, and compliance that these currencies provide.
RBA is Exploring Cross-Border Transactions
Additionally, the RBA has partnered with ANZ, Commonwealth Bank, the Australian Bond Exchange and Canvas in related projects. The RBA and Australian fintech Canvas for example, were able to conduct the first cross-border transaction with eAUD and USD.
The test involved using Canvas Connect a layer-2 running on Ethereum (ETH) to achieve an Australian first for cross-border transfers. According to the CEO of Canvas, David Lavecky, this will speed up cross-border payments, reduce costs, and lower risks compared to traditional FX transactions.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
