Mastercard is about to launch a test platform for CBDC (Central Bank Digital Currency) digital currencies.
This has been announced by the company, which is ready to embrace the revolution that will take place when central banks equip themselves with their own stablecoin, anchored to the value of local currencies.
Research conducted by Bank for International Settlements (BIS) reveals that more than 80% of central banks are working on their digital currencies and 40% are already moving from the study phase to the concept and design experimentation phase.
In order to meet this innovation, Mastercard will propose a platform where it will be possible to test cases of use of CBDCs.
Mastercard, in announcing the initiative, also shows that it does not only address central banks but also asks for the collaboration of commercial banks and tech and consulting companies in order to work on digital currencies, experimenting interoperability with existing means of payment.
The Mastercard platform for CBDCs „customizable“.
Aware that each reality has its own peculiarities, and that each bank is approaching digital currencies in a different way, the platform developed by Mastercard will be „customizable“.
Within the same one it will be possible to simulate the distribution of digital currency, the use, the payments also by consumers. It will also serve to examine the technology and improve the development, in particular from a technical and security point of view.
The CBDC revolution
In short, Mastercard wants to support the digital revolution, in a world where China seems to be ahead. The digital Yuan is in fact being tested. But also other countries are thinking about digital currency. If Europe wants to be ready, France would also start testing, while the digital dollar is currently just a project for the Fed of the United States.
Bodies like Mastercard will have the task to unite public and private to change the world of transactions and payments.
Explains Raj Dhamodharan, Executive Vice President, Digital Asset and Blockchain Products and Partnerships of Mastercard:
„Central banks have accelerated their exploration of digital currencies with a variety of goals, from promoting financial inclusion to modernizing the payments ecosystem. Mastercard is driving innovation with the public sector, banks, fintech and consulting firms in the exploration of CBDCs, working with partners who are aligned with our core values and principles. This new platform The News Spy supports central banks in making decisions, now and in the future, on the path to follow for local and regional economies.
Sheila Warren, Head of Blockchain, Digital Assets and Data Policy at the World Economic Forum, added:
„Public-private partnerships in central bank digital currency exploration can help central banks better understand the range of technological possibilities and capabilities available to CBDCs. Central banks can benefit from support in exploring the range of options available with respect to CBDCs, as well as understanding what opportunities may be available“.