Mastercard Introduces CBDC Tokenization Tech, Experts Discuss CBDC-Stablecoin Coexistence

By: Isha Das

Mastercard recently demonstrated a technology which facilitates the tokenization or 'wrapping' of Central Bank Digital Currencies (CBDCs) onto multiple blockchains. The initiative aims to enhance transactional security and consumer convenience. The demonstration involved the purchase of a non-fungible token (NFT) on the Ethereum public blockchain using CBDC. This solution, a part of Mastercard's Multi Token Network, is expected to bolster blockchain-based payment and commerce solutions.

Meanwhile, at the Future Innovation Summit event in Dubai, a panel discussed the coexistence of CBDCs and stablecoins. Eetu Kuneinen, co-founder of the gold-backed stablecoin project DGC, presented a case against CBDCs flagging certain risks with government control. The other panelists held varying views. Nikita Sachdev of Luna Media Corp argued for government blockchain exploration while attached potential risks to both CBDCs and stablecoins. Jorge Carrasco from FTI Consulting envisioned a future where CBDCs and stablecoins might become interoperable.