Mastercard announced that it has successfully completed the Hong Kong Monetary Authority’s (HKMA) e-HKD Pilot Programme, showcasing the Mastercard Multi-Token Network’s capacity to handle Web3 transactions, including decentralized applications and NFTs.
The program demonstrated the potential integration of a retail central bank digital currency (CBDC) for efficient Web3 marketplace transactions.
Mastercard’s simulation within a controlled environment covered the entire hypothetical e-HKD lifecycle, from creation to use in transactions, and incorporated smart contracts to ensure transaction quality and reduce risk.
The pilot utilized Mastercard’s Multi-Token Network, launched in June 2023, which offers blockchain-based payment solutions and aims to foster interoperability and efficient commerce.
Sandeep Malhotra, Mastercard’s Executive VP for Asia Pacific, emphasized the pilot’s success in demonstrating digital currency utility across various platforms and the possibility of leveraging existing banking infrastructure to enhance adoption.
The pilot also explored secure purchases of physical goods with NFTs representing authenticity certificates.
The beta version of the network, a part of Mastercard’s suite of virtual testing environments, is being used worldwide to develop applications with partners.
Following the pilot’s insights, Mastercard is keen on further supporting HKMA and other central banks in integrating CBDCs with traditional payment systems to facilitate transactions in the emerging Web3 economy.
Mastercard was one of 16 entities selected for the pilot in May 2023, aimed at exploring e-HKD use across multiple financial applications.