Mastercard starts a new CBDC-related venture to "bring a greater understanding of the benefits and limitations" of CBDCs.
In a progressive move towards understanding the intricacies of central bank digital currencies (CBDCs), Mastercard recently announced the creation of a unique partnership program.
According to the announcement shared on August 17th, during the collaboration, Mastercard will join forces with seven leading entities from the blockchain and payment technology space. Together with blockchain entities, Mastercard will work on bringing "a greater understanding of the benefits and limitations" of CBDCs.
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Mastercard's approach to this initiative is ambitious and comprehensive. While the payment giant hasn't unveiled the specifics of their consortium's agenda, it's clear that its focus encompasses deep dive into security, privacy, interoperability, and the role of the private sector in propelling innovation and enhancing efficiencies.
Raj Dhamodharan, Mastercard's head of digital assets and blockchain, remarked:
As we look ahead toward a digitally driven future, it will be essential that the value held as a CBDC is as easy to use as other forms of money.
Among the participants in Mastercard's unique program are well-known players in the blockchain space, like Ripple, ConsenSys and Fluency. Other notable participants include Giesecke+Devrient, Idemia, Consult Hyperion, and institutional custody platform Fireblocks.
Mastercard's involvement in the crypto domain isn't a recent venture. Although their direct engagement has seen some setbacks, they've always supported the potential of CBDCs. Their proactive stance is evident in past collaborations with significant entities such as the Bank for International Settlements, the New York Federal Reserve Bank, and several central banks.
The partnership orchestrated by Mastercard signifies the growing importance of CBDCs in reshaping the financial landscape. By curating a team of industry leaders and innovators, Mastercard is not just positioning itself at the forefront of CBDC exploration but also catalyzing a collective push towards a more digitized, efficient, and inclusive monetary future.
