MasterCard: a CBDC testing platform is coming soon
MasterCard: a CBDC testing platform is coming soon
Stable Coin

MasterCard: a CBDC testing platform is coming soon

By Eleonora Spagnolo - 9 Sep 2020

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MasterCard is about to launch a CBDC (Central Bank Digital Currency) testing platform

The company has announced that it is ready to embrace the revolution that will happen when central banks have their own stablecoins, anchored to the value of local currencies. 

Research conducted by Bank for International Settlements (BIS) reveals that over 80% of central banks are working on their digital currencies and 40% are already moving from the study phase to concept and design testing

To respond to this innovation, MasterCard will propose a platform where CBDC case studies can be carried out

MasterCard, in announcing the initiative, also shows that it is not only addressing central banks but is also asking for the collaboration of commercial banks and tech and consulting companies to work on digital currencies, testing interoperability with existing means of payment. 

The MasterCard platform for “customizable” CBDCs

Mindful 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 platform, it will be possible to simulate the distribution of a digital currency, its use, and payments also by consumers. It will also serve to examine the technology and improve 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 undergoing testing. But other countries are also looking at digital currencies. Europe wants to be ready, France is also starting to test it, while the digital dollar is currently only a project for the US Fed

Companies such as MasterCard will have the task of bringing together the public and private sectors to change the world of transactions and payments. 

Raj Dhamodharan, Executive Vice President, Digital Asset and Blockchain Products and Mastercard Partnerships, explains:

“Central banks have accelerated their exploration of digital currencies with a variety of objectives, from fostering financial inclusion to modernizing the payments ecosystem. Mastercard is driving innovation with the public sector, banks, fintechs, and advisory firms in the exploration of CBDCs, working with partners that are aligned to our core values and principles. This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies”.

Sheila Warren, Head of Blockchain, Digital Assets and Data Policy at the World Economic Forum, added: 

“Collaborations between the public and private sectors in the exploration of Central Bank Digital Currencies can help central banks better understand the range of technology possibilities and capabilities available with respect to CBDCs. Central banks can benefit from support in exploring the option set available to them with respect to CBDCs, as well as gaining insight into what opportunities may be forthcoming”.

 

Eleonora Spagnolo
Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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