The credit card provider Mastercard offers central banks a cooperation in the area of digital central bank currencies (CBDC) in order to test them. With their tool, the company wants to make it easier for banks to gain a foothold in the blockchain-based area.
In the statementThe company quoted a study by the Bank for International Financial Equalization carried out at the end of 2019:
The international organization based in Basel stated that 80 percent of the central banks examined are dealing with Bitcoin Trader. 40 percent have already switched from theoretical research to practical tests. Central banks on all continents reacted to the bank’s questions, only from Africa and Eastern Europe there were noticeably few reactions.
Reason enough for Mastercard to turn to the central banks itself. In addition to these, the payment service provider also wants to work with commercial banks, tech and consulting firms. BitPay and Wirex are just two of the blockchain companies that are already involved.
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The program offered by Mastercard is said to be very comprehensive. This will first mimic the issue, distribution and exchange of CBDC. The infrastructure from banks to companies to consumers is in the interests of the studies. The area of application in the consumer area of digital currencies forms the second focus, i.e. the payment of goods and services.
In addition, the design of the technology and its applications, along with interoperability with existing programs, also attracts interest. The final stage of the test is the evaluation of the work of the central banks. In addition to the technical structure and safety, testing of the design and operations should be the focus here. Mastercard always wants to respond individually to the special regional requirements of the individual banks.
Innovation „digital central bank currency“
Central bank digital money is said to support fiat currencies such as euros (EUR) and US dollars (USD). For example, once implemented, middlemen such as commercial banks can be skipped; a concept that the Chinese and Brazilian central banks want to have implemented as early as 2022 . Central banks also want to increase the speed of transactions and reduce transfer costs.
This is not unknown territory for the American company. Mastercard has already registered 116 patents in the blockchain area, including a system for billing micro payments as recently as August . The planned cooperations are also a way for Mastercard to maintain its relevance as a payment service provider in the future.