Mastercard Launches a CBDC Platform for Blockchain Projects
- Mastercard announced that Ripple, Consensys, and Fireblocks are some of the participants in its CBDC Partner Project.
- The Bank for International Settlements claims that 93% of central banks globally are engaged in CBDC-related projects.
- Mastercard previously collaborated with Binance to launch prepaid crypto cards in Brazil.
Global payment provider Mastercard has joined the ongoing conversations about central bank digital currencies (CBDCs) and has launched a platform where blockchain projects can collaborate on CBDCs.
The payment company announced on Thursday that Ripple, Fireblocks, Fluency, Idemia, and Consensys are some of the early participants in its CBDC Partner Project.
Mastercard’s head of digital assets and blockchain, Raj Dhamodharan, explained that “by assembling the strengths, deep expertise, and different capabilities of these partners, we can drive innovation in the central banking community and along the CBDC value chain as the space continues to evolve.”
Central banks globally have been looking into ways to create their own digital currencies. However, unlike cryptocurrencies, which have attracted mainstream attention, several attempts to launch a CBDC have been unsuccessful. Regardless, CBDCs have the potential to improve digital payments.
Mastercard’s CBDC Partner Project will reportedly help to provide a better understanding of the benefits and limitations of CBDCs and how to seamlessly implement them. Dhamodharan said in a statement:
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.
Mastercard has a long history of innovation in the CBDC space and the wider crypto market. The payment company has an ongoing partnership with Binance to provide crypto prepaid cards for users in Brazil.
Mastercard’s involvement in the crypto space joins the growing trend of traditional payment companies partnering with crypto projects. Visa, another payment service provider, recently announced plans to help crypto users pay gas fees with their cards. The adoption of cryptocurrencies by these payment giants mirrors the increasing popularity and acceptance of Web3.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
