Mastercard announces launch of Central Bank Digital Currencies (CBDCs) Testing Platform

Mastercard recently announced the launch of the Central Bank Digital Currencies (CBDCs) Testing Platform for National Digital currencies.

The platform will serve a purpose to evaluate central bank digital currencies and their use cases. It will help Mastercard to leverage its capabilities to build safe and secure digital currencies, notes the announcement.

Executive Opinion

Executive Vice President, Digital Asset and Blockchain Products and Partnerships, Mastercard, said, "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."

Head of Blockchain, Digital Assets and Data Policy at the World Economic Forum, Sheila Warren, said, "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."

Mastercard's CBDC Test Platform

The announcement also noted an observation from a survey by the Bank for International Settlements which said around 80 percent of central banks are looking at digital currencies.

Central Bank Digital Currencies (CBDCs) are supposed to be equivalent to existing government-backed paper or fiat currencies. The Mastercard's CBDC platform will allow commercial and central banks to simulate CBDC issuance, distribution, and exchange ecosystem with other banks and consumers. The platform will be also used to understand how people can use CBDC for goods and services with Mastercard.

Mastercard has also invited central and commercial banks, tech and advisory firms for the partnership to leverage CBDCs in their respective countries, notes the announcement.

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