Payment processing giant Mastercard is forming a central bank digital currency (CBDC) program with a group of partners from the blockchain industry to promote innovations in this space, Mastercard said in a post on its site.
“To bring a greater understanding of the benefits and limitations of CBDCs and how to implement them in a way that is safe, seamless and useful, Mastercard is convening a group of leading blockchain technology and payment service providers to join its new CBDC Partner Program. It’s designed to foster collaboration with key players in the space so they can drive innovation and efficiencies,” the post quotes Raj Dhamodharan, head of digital assets and blockchain at Mastercard, as saying.
The initial partners in Mastercard’s CBDC program include Ripple, Consensys, Fluency, Idemia, Consult Hyperion, Giesecke+Devrient, and Fireblocks.
“We believe in payment choice and that interoperability across the different ways of making payments is an essential component of a flourishing economy,” the post quotes Dhamodharan as saying.
Mastercard believes that there are many issues that central banks need to consider when they plan to launch CBDCs. Some of the important issues are the role of the private sector, security, privacy, and interoperability of CBDCs. Also, they need to think about the problem CBDCs intend to solve and if CBDCs are the right tool for such a job.
