By Tofiq Aliyev
On Sep 21, 2020
Mastercard announced that it developed a “proprietary virtual testing environment.” The global payment network processor target to help central banks to evaluate Central Bank Digital Currencies (CBDC) use cases.
Through this platform, the usage areas of digital currencies will be examined. The testing platform determines how consumers can use central bank digital currencies to pay for goods and services wherever Mastercard is accepted. It customized for each central bank, and
“Enables the simulation of issuance, distribution, and exchange of CBDCs between banks, financial service providers, and consumers.”
Mastercard is looking for partners who can use this new platform. These can be central banks, but also commercial banks, fintech, and advisory companies. The technological design of CBDCs, their proposed use cases, and interoperability with existing payment methods need to be evaluated.
As seen in recent years, the global economy is about to adopt digital payment systems. Therefore, banks are looking for ways to support this innovation. According to research by International Settlements, 80% of central banks work on some form of Central Bank Digital Currency (CBDCs). Almost 40% of them progressed from a conceptual study to the concept and design experiments.
Mastercard committed to fully support central banks on their chosen path to innovative and modernize payments. The company is ready to modify the way people and businesses transact together by establishing partnerships between the public and private sectors while looking for solutions that seamlessly integrate with existing payment methods. Mastercard executive vice president for digital asset and blockchain products, Raj Dhamodharan says:
“This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies.”
Mastercard is also making exceptional progress in the crypto space. In July, the company announced the advancement of its cryptocurrency card partner program. The program aims to “make it easier for consumers to hold and activate cryptocurrencies.” Wirex became the first local cryptocurrency platform to get Mastercard’s prior membership, which allows the company to issue direct payment cards. According to Raj Dhamodharan, at a time when the cryptocurrency market continues to mature, Mastercard is taking this further and creating safe and secure applications for consumers and businesses in today’s digital economy.
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