- Global payments company Mastercard launched a virtual testing platform for central banks to test out their CBDCs.
- The technology company invited central banks, commercial banks, techs, and advisory firms to evaluate the suitability of CDBDs through its custom testing platform.
As the Bank for International Settlements survey revealed, a whopping 80% of central banks are engaged in some form of Central Bank Digital Currencies (CBDCs). In the race to embrace digital payments, central banks clearly don’t want to lose its control of the monetary policy in issuing and distributing currency while supporting innovation.
Supporting central banks modernizing payments, Mastercard announced this “proprietary virtual testing environment” today where the use cases for the digital fiat currencies could be evaluated.
“Central banks have accelerated their exploration of digital currencies with a variety of objectives, from fostering financial inclusion to modernizing the payments ecosystem,” said Raj Dhamodharan, Executive Vice President, Digital Asset, and Blockchain Products and Partnerships at Mastercard. And with this new platform, the company wants to support that decision.
On this virtual platform, the interested parties can simulate the issuance and distribution of the CBDC along with the exchange ecosystem with banks and customers.
It can be used to demonstrate how CBDC can be used to pay for goods and services anywhere Mastercard is accepted.
The development efforts of the CBDC that includes the technical, design, and security aspect, can also be evaluated while to determine its value and feasibility in the market, use cases and tech designs can be examined as well.
“Mastercard wants to harness its expertise to enable the practical, safe and secure development of digital currencies.”