Leveraging its multi-token network, Mastercard developed the solution for HKMA’s e-HKD pilot program.
HONG KONG, November 7, 2023 /PRNewswire/ — Mastercard today announced that it has completed the Hong Kong Monetary Authority’s (HKMA) e-HKD pilot program, which demonstrated the effectiveness of the Mastercard Multi-Token Network solution for settling Web3 transactions involving decentralized applications and digital assets, such as NFT. The pilot also presented the potential for seamless funding and settlement in and out of Web3 markets via a retail central bank digital currency (CBDC), such as e-HKD in the future.
In testing its solution, Mastercard simulated a complete lifecycle of the hypothetical e-HKD, from minting and distribution to spending and redemption in its sandbox environment. Additionally, the pilot simulated conditionality to ensure quality and successful delivery of the physical item purchased using smart contract functionality, reducing risk for all parties involved in the transaction.
The pilot leveraged two pillars of the Mastercard Multi-Token network, which the company introduced In June 2023 as a set of fundamental capabilities designed to enable more efficient payment and commerce applications using blockchain technology. This includes Mastercard crypto IDwhich offers a set of common standards and verification infrastructure to enable trusted interactions using blockchain networks, in addition to interoperability to deliver functionality across all supported tokens and payment networks in a scalable manner .
Sandeep Malhotraexecutive vice president, products and innovation, Asia PacificMastercard, said: “What’s exciting about this pilot is that it has demonstrated the ability to use digital currencies across multiple platforms, as well as the potential to use bank rails existing businesses to drive global adoption. It also showed how aspects of the Mastercard Multi-Token Network could potentially be used to solve real-world problems. In this case, we explored the safe and secure purchase of a physical luxury item with an associated NFT that represents its certificate of authenticity from an unknown party.
The Multi-Token Network Beta, which was used to support Mastercard’s pilot under the program, is one of several Mastercard proprietary virtual test environments and is deployed globally as a test bed. trial for the development of live pilot applications with financial institutions, fintechs and centrals. banks.
“Based on the results and learnings from the e-HKD pilot, Mastercard looks forward to continuing to support the HKMA and other central banks, as they explore how CBDCs can be integrated into existing payment methods, facilitating thus the task of consumers and businesses. transact in the Web3 economy, while maintaining monetary policy and financial stability,” Malhotra added.
Mastercard was one of 16 participants chosen by the HKMA in May 2023 participate in the pilot project. The program was designed to study e-HKD use cases in six categories: full payments, programmable payments, offline payments, tokenized deposits, Web3 transaction settlement, and tokenized asset settlement.
Mastercard is a global leader in leveraging multiple payment channels and leveraging public and private sector partners to bring as many people as possible to the digital economy. Central banks, commercial banks, and technology and consulting firms are invited to partner with Mastercard to evaluate CBDC technology designs, validate use cases, and assess interoperability with existing payment rails available for consumers and businesses. Learn more about Mastercard’s approach to partnering with central banks to develop CBDCs. here.
See the video: https://tinyurl.com/5yxdhdkb
About Mastercard (NYSE: MA), www.mastercard.com
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Through secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections in more than 210 countries and territories, we are building a sustainable world that unlocks invaluable possibilities for all.
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SOURCE Mastercard
