Mastercard, a global leader in payment solutions, has revealed its strategic approach to CBDC (central bank digital currency) development. This involves the introduction the CBDC partner program. This trailblazing initiative has united key partners, notably blockchain frontrunner Ripple, along with innovative blockchain development company Consensys.
On Thursday, Mastercard issued an official statement to announce its new CBDC partner program. The program’s primary objective is to encourage collaboration among significant stakeholders within the blockchain and payment services domain.
Raj Dhamodharan, Head of Digital Assets and Blockchain at Mastercard, stressed the value of this cooperative strategy, underscoring the role it plays in promoting payment diversity and interoperability within a robust economic framework.
The initial partners in the program are Ripple and Consensys, along with other significant entities like Fireblocks and Fluency. Fluency is recognized for its innovative tokenized asset services.
Mastercard’s CBDC Endeavors and Collaborative Vision with Ripple and Consensys
Dhamodharan, in a recent podcast interview with The Block, shed light on Mastercard’s CBDC program. He emphasized the crucial necessity for flexibility in CBDC development. He also stressed the incorporation of features tied to production, consumer protection, and privacy right from the CBDC’s inception. This becomes particularly crucial when governments aim to ensure accessibility for both businesses and consumers.
Although the program’s framework specifics remain undisclosed, Mastercard has emphasized the necessity of avoiding isolated CBDC implementation. The CBDC Partner Program primary objective is to guide central banks in constructing CBDCs that bring fresh and valuable dimensions to the economy.
Mastercard’s entry into the CBDC realm dates back to September 2020. During that time, it launched a testing platform designed specifically for central banks. The purpose was to facilitate the assessment of CBDC systems.
Building upon this initial move, the company achieved a notable milestone in February 2021. It introduced prepaid cards in the Bahamas, a move that allowed users to smoothly convert the Sand Dollar, the CBDC exclusive to the nation.
Through this collaborative initiative, Mastercard stands alongside esteemed partners such as Ripple and Consensys. The company is well-positioned to achieve significant progress within the dynamic realm of central bank digital currencies. This collaborative effort sets the stage for potentially transformative developments that could reshape global economies in innovative ways.
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