Payments processing giant Mastercard and the Reserve Bank of Australia (RBA) have successfully tested the interoperability of a central bank digital asset (CBDC) and the ability to restrict its use to authorized parties. Mastercard’s solution allowed the holder of a pilot CBDC to purchase a non-fungible token (NFT) listed on Ethereum. The RBA’s pilot CBDC platform locked the specified amount of currency and minted the same amount of wrapped pilot CBDC on Ethereum. Mastercard’s solution includes controls to ensure that the pilot CBDC can only be held, used, and redeemed by authorized parties that have undergone Know Your Customer (KYC) verification and risk assessment. The test transaction required the buyer and sellers’ Ethereum wallets and the NFT marketplace smart contract to be allow-listed within the platform. Central bank digital currencies have sparked controversy in the crypto community, with concerns raised about reduced privacy and financial censorship. US Republican lawmakers recently voted in favor of a proposed law to prevent the Federal Reserve from issuing a CBDC.

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Information	Details
Geography	Australia
Countries	🇦🇺
Sentiment	neutral
Relevance Score	1
People	None
Companies	Ethereum, Federal Reserve, Reserve Bank of Australia (RBA), Mastercard
Currencies	Ethereum
Securities	None