Mastercard has launched a central bank digital currencies (CBDCs) testing platform which will allow central banks to explore the use of this asset class.
According to a press release, Mastercard has already sent out partnership invitations to central banks, commercial banks, advisory firms, and other fintech companies.
The virtual platform will show how CBDC technology will be used by a consumer to pay for goods and services anytime and in every platform where Mastercard is legally accepted.
The newly created CBDC’s virtual and custom testing platform strives to drive scalable innovations as well as to maintain monetary policy and financial stability.
The virtual and custom testing platform aims to maintain and encourage absolute development within the CBDCs community by allowing central banks to evaluate the uses of the said platform.
Thoughtfully, according to how the world’s economy is accepting the impact of digital currency payments, over 80% of central banks have turned to engage in CBDCs services.
Raj Dhamodharan, Digital Asset and Blockchain Products Executive Vice President at Mastercard, said that central banks are accelerating their testing of digital currencies with “a variety of objectives”, which include fostering financial inclusion and modernizing the payments system as a whole.
This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies.
According to a survey done by the Bank for International Settlements, about 40% of central banks have reportedly shown progress from conceptual research as well as experimenting with concept and design via CBDC. Meanwhile, China is currently leading the CBDC arms race, even though it may take a while before this asset class becomes fully integrated into the nation’s monetary system.