Mastercard has detailed its latest findings regarding non-fungible tokens (NFTs) following its participation in the Central Bank of Australia’s (CBDC) pilot project.
“It also unlocks new opportunities for collaboration between the public and private networks to drive real impact in the digital currency space,” the statement said.
Mastercard’s new findings in the CBDC pilot
In a recent statement, Mastercard claims it has found new capabilities that enable the tokenization of CBDCs across different blockchains. The payments giant believes this in turn increases the potential for greater adoption and improved security:
“It successfully demonstrated the capabilities of a new solution that allows CBDCs to be tokenized (or “wrapped”) on different blockchains, giving consumers a new option to participate in trading across multiple blockchains with greater security and ease.”
Zack Burks, CEO and founder of Mintable, in collaboration with Mastercard, identified a potential link between NFTs and CBDCs:
“The enormous potential of NFTs became clear during this pioneering CBDC pilot. Together with Mastercard, we have identified a use case where digital currencies and NFTs can be easily linked.”
Burks noted that the link between the two could potentially “eliminate fraud and theft, putting an end to the loss of documentation and data.”
He further explains that NFTs are currently demonstrating a wider range of applications in society than digital currencies.
“While digital currencies are still in their infancy, NFTs are already being used for new media, gamification, digital identities, loyalty programs, ticketing, authentication, certification and more.”
This follows BeInCrypto’s recent report indicating that Australia’s CBDC pilot showed that CBDCs should complement rather than replace cryptocurrencies.
The pilot explored the potential of using CBDCs to support stablecoins and facilitate the settlement of automated transactions.
On March 2, the Reserve Bank of Australia (RBA) announced its plan to launch a “live pilot” of a CBDC.
The RBA worked with the Digital Finance Cooperative Research Center (DFCRC) on an ongoing investigation. This aims to evaluate the benefits that a CBDC could provide to the Australian population.
