Mastercard is creating a new program to explore the prospects and opportunities of central bank digital currencies (CBDC). The initiative will involve working with seven blockchain companies that provide payment services, including Ripple, Fireblocks, ConsenSys, and others.
Payment giant Mastercard announced the creation of a new partnership program that will explore the benefits and limitations, as well as how to safely and efficiently implement various CBDC projects.
As part of the initiative, Mastercard will join forces with seven leading blockchain payment service providers:
- Ripple. It’s involved in the development and testing of CBDC projects in Montenegro, Palau, Bhutan, and the U.S. and works with the governments of Colombia, Australia, Canada, and Israel to implement blockchain initiatives.
- ConsenSys. A company specializing in blockchain solutions and Web3 technologies. It works on digital won and digital real projects.
- Fluency. A provider of asset tokenization solutions, involved in 23 CBDC projects.
- Idemia. A digital identity technology company. It works on technologies for privacy in offline payments and is also involved in issuing credit cards for the digital yen (DCJPY).
- Consult Hyperion. A consulting company working on defining CBDC requirements and solutions for offline payments. It develops detailed guidelines for central banks together with the BIS.
- Giesecke+Devrient. It’s engaged in offline payment solutions and CBDC implementation and participates in the Hong Kong dollar (e-HKD) pilot project.
- Fireblocks. A platform for digital asset transactions that collaborates with central banks in Italy and Australia.
According to Raj Dhamodharan, Head of Digital Assets and Blockchain at Mastercard, the successful implementation of CBDCs in the future requires attention to security, privacy, transparency, and ensuring public trust. Mastercard’s new initiative will consolidate the efforts of all its participants. A systematic approach, according to Dhamodharan, is able not only to stimulate innovation in the field of digital currencies of central banks, but also to contribute to their successful adoption in the economy.
Recent studies show that about 93% of all central banks in the world are engaged in CBDC research.
