Mastercard, an American multinational financial service has recently launched a proprietary virtual testing environment. The main purpose of this testing environment is to evaluate the use of cases of central based digital currencies (CBDC).
Through this platform, the firm is aiming to issue, distribute and exchange CBDC between financial service providers, banks and consumers. It is revealed that in order to assess the CBDC tech designs and validate the use cases, different financial institutions and firms have formed partnerships with Mastercard.
Mastercard aims a practical, safe and secures digital currency development
Being a giant in financial services, Mastercard is aiming to bring the maximum people to the digital economy. The firm also wants to enable completely safe and practical digital currency development.
Raj Dhamodharan, Executive Vice President at Mastercard has said that the central banks are exploring digital currencies with a lot of objectives. Through this, they are aiming to foster financial inclusion along with modernizing the complete payment ecosystem. He also said that the firm is working along with such partners who are also having a similar vision. Along with this, they are also aligned to the core value and principles of the firm. His statement reads,
“This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies.”
Collaboration between the public and private sector
Sheila Warren, Head of Blockchain, Digital Assets and Data Policy, World Economic Forum talks about the collaboration between the public and private sectors. Warren said that this collaboration in order to explore CBDC is going to be extremely beneficial for the central banks. The central bank will be able to understand every possible thing related to CBDC including its possibilities and capabilities. The bank will also be able to get aware of all the opportunities that might be there in relation to CBDC.