Mastercard Has Launched A Digital Currency Testing Platform

Mastercard Has Launched A Digital Currency Testing Platform

Mastercard has developed a platform that aims to help central banks test their digital currencies.

This platform enables to simulate the issuance, distribution and exchange of CBDCs between banks, financial service providers, and consumers.

When making transactions, payments and using other services of a bank on this platform, clients can use that bank’s digital currency, wherever Mastercard is accepted in the global scope.

Virtual Testing Environment

On September 9, Mastercard International Payment Group announced the development of a “virtual testing environment” for central banks to evaluate the use of bank digital currencies. Central (CBDC). Notice details:

“Central banks, commercial banks, and consulting and technology firms are invited to collaborate with Mastercard to review CBDC technology designs, validate use cases, and evaluate interoperability. with existing payment methods for consumers and businesses today ”.

Realizing the importance of currency conversions taking place, particularly in the banking sector, Mastercard proceeded with a plan to develop a digital testing platform and liaise with central banks. to jointly develop this project.

Raj Dhamodharan, Executive Vice President of Digital Assets and Products and Partnerships at Mastercard, said: “Central banks have accelerated the discovery of digital currencies with a wide range of goals. ranging from promoting financial inclusion to modernizing payment ecosystems. “This new platform supports central banks as they make decisions now and in the future about the future path for local and regional economies.”

Sheila Warren, Head of Data Policy and Digital Assets and Blockchain at the World Economic Forum, believes, “Collaboration between the public and private sectors in exploring digital currencies of Central banks can help central banks better understand the scope of technology and capabilities available to CBDCs. “

Each central bank will have different business processes, so the digital currency testing platform will be customized accordingly. This includes how CBDC can communicate with bar networks. Existing payments and infrastructure, including real-time cards and payments, Mastercard describes. The system can also be used to “Demonstrate how consumers can use CBDC to pay for goods and services anywhere Mastercard is accepted worldwide.”

At the same time, Mastercard also showed interest in cryptocurrencies because they have been investing in researching it

In July, the organization spoke of fostering partnerships with crypto organizations that aim to make it easier for “consumers to hold and activate cryptocurrencies”.

Specifically, Mastercard’s first crypto partner, Wirex, is granted a Mastercard membership that allows the company to directly issue payment cards. “The cryptocurrency market continues to grow”.