NFT’s Potential Shines Bright For Mastercard in CBDC Pilot

Mastercard has detailed its latest findings regarding non-fungible tokens (NFTs) following its participation in Australia’s central bank digital currency (CBDC) pilot project.

“It also unlocks new opportunities for collaboration between the public and private networks to drive genuine impact in the digital currency space,” the statement outlined.

Mastercard’s New Findings In CBDC Pilot

In a recent statement, Mastercard claims that it has found new capabilities that allow for the tokenization of CBDCs across various blockchains. The payment giant believes this, in turn, expands the potential for increased adoption and enhanced security:

“It has successfully demonstrated capabilities of a new solution that enables CBDCs to be tokenised (or “wrapped”) onto different blockchains, providing consumers with a new option to participate in commerce across multiple blockchains with increased security and ease.”

Zack Burks, CEO and Founder of Mintable, in conjunction with Mastercard, has recognized a potential association between NFTs and CBDCs:

“The vast potential of NFTs was obvious during this progressive CBDC pilot. Together with Mastercard, we have identified a use case whereby digital currencies and NFTs can easily be linked.”

Doubts Arise About CBDC’s Popularity

Burks noted that the link between the two could potentially eliminate fraud and theft. He further explains this could prevent the “loss of documentation and records.”

He goes on to elaborate that NFTs are demonstrating a wider range of applications in society than digital currency.

“While digital currencies are 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 demonstrated that CBDCs should serve to complement, rather than replace, crypto.

The pilot examined 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 partnered with the Digital Finance Cooperative Research Centre (DFCRC) in a continuous research endeavor. This is aimed at evaluating the advantages that a CBDC could offer to the Australian population.

The exploration of CBDC use cases is widespread among most countries. However, doubts about their effectiveness are beginning to emerge in certain quarters.

Columbia’s central bank has reportedly stated that using a CBDC will hardly make an impact on its struggling economy. This results from the absence of a need for an alternative to fiat currency since approximately 75% of retail transactions are conducted using physical cash.