Mastercard, the prominent payment company, has collaborated with leading figures in blockchain technology to introduce the CBDC Partner Program.
On August 17th, Mastercard announced the initiation of a partnership program with seven distinguished providers of blockchain and payment technology. It aims to enhance comprehension regarding the advantages and constraints of central bank digital currencies (CBDCs).
Michael Miabech, the CEO of Mastercard, posted about the initiative on X. He announced the company’s active engagement in developing a novel program aimed at aiding central banks in enhancing their exposure to CBDCs.
While not disclosing explicit plans for the group, Mastercard referenced several prevailing concepts within the CBDC realm. These include security, privacy, interoperability, fostering innovation, and efficiencies, all of which the private sector will drive forward.
Collaborators include firms, like Ripple, a leading enterprise blockchain company; ConsenSys, a Web3 development firm; and FireBlocks, a digital asset management company. Other partners are Consult Hyperion, IDEMIA, Fluency, and Giesecke+Devrient.
Mastercard’s Interest In CBDCs
The company observed that CBDCs are gaining traction. It reported that 93% of central banks are involved in developing CBDCs. Four of these central banks have already introduced them into circulation. Nonetheless, significant queries persist concerning the roles of CBDCs. Also, there are concerns about security, privacy, and the seamless integration of these digital currencies with pre-existing systems.
For years, Mastercard had been actively engaged in the realm of cryptocurrencies. However, its involvement in this space has receded in recent times.
The company’s robust endorsement of CBDCs has been evident. It took part in initiatives alongside the Bank for International Settlements, the New York Federal Reserve Bank, and various individual central banks.
Another Financial Firm In The Trend Of Embracing Crypto
Numerous prominent companies across all industries are being drawn to the potential of crypto and blockchain technology.
Following a similar approach, Visa, a traditional rival of Mastercard, has also escalated its endeavors to explore crypto-based applications. Consequently, Visa has unveiled an innovative scheme to enable credit card payments for Ethereum gas fees.