Mastercard Launches CBDC Partner Program – Mastercard, the major player in the credit industry, has revealed its initiative to enhance its comprehension of central bank digital currency (CBDC) and its potential use cases. The CBDC Partner Program will incorporate companies such as Ripple, Consensys, Fluency, Idemia, Consult Hyperion, Giesecke+Devrient, and Fireblocks.
Their collective goal is to collaborate on integrating these technologies into current frameworks. In response to the growing interest from central banks, Mastercard has introduced a program centered around central bank digital currency (CBDC). This initiative aims to foster collaboration with prominent entities.
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The CBDC Partner Program represents Mastercard’s endeavor to gain deeper insights into the development of CBDCs and the potential interactions between these government-issued digital currencies and private credit enterprises. Notable companies with expertise in the CBDC domain, such as Ripple, actively engaged in Palau’s stablecoin pilot, and Fluency, specializing in CBDC interconnection solutions, will form part of this consortium.
Among the initial collaborators within this consortium are Web3 and Ethereum software boutique Consensys, digital identity technology provider Idemia, digital identity consultancy Consult Hyperion, security technology group Giesecke+Devrient, and the digital asset operations platform Fireblocks.
These collaborators will enable Mastercard to collaborate closely with these companies’ innovative efforts in various international CBDC initiatives. For instance, Giesecke+Devrient is currently engaged in the development of a CBDC pilot in collaboration with the Bank of Ghana, tailoring technological solutions to meet the specific needs of the country.
Mastercard is actively engaged in multiple such endeavors globally. In Brazil, it’s delving into the intricacies of the Drex platform, often referred to as the digital real, focusing on aspects like privacy and programmability. In the United States, Mastercard played a pivotal role in a pilot project involving a wholesale digital dollar, which assessed the practicality of utilizing such a digital currency for both domestic and international transactions.
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The underlying motivation for Mastercard’s initiative appears to revolve around the pursuit of interoperability between these emerging currency forms and established platforms. Raj Dhamodharan, head of digital assets and blockchain at Mastercard, stated: “We believe in payment choice and that interoperability across the different ways of making payments is an essential component of a flourishing economy. 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.”
