CBDCs Underway: Mastercard Launches New Program With Ripple

Recent reports have confirmed that the development of Central Bank Digital Currencies (CBDCs) is underway, with significant efforts being made to expedite their release. Read on to learn more about the latest updates on this topic.

Mastercard, a leading payment processing company, is actively promoting a new program that focuses on CBDCs.

This initiative, called the CBDC Partner Program, aims to bring together important stakeholders to promote innovation and efficiency in the development of CBDCs.

“To bring a greater understanding of the benefits and limitations of CBDCs and how to implement them in a way that is safe, seamless and useful, Mastercard is convening a group of leading blockchain technology and payment service providers to join its new CBDC Partner Program.”

Mastercard has announced its first partners in its new program, which includes blockchain-based digital payment network Ripple, web3 software company Consensys, technical consultancy firm Consult Hyperion, digital asset operations firm Fireblocks, CBDC marketplace platform Fluency, security technology group Giesecke+Devrient, and digital identity technology provider Idemia.

According to Raj Dhamodharan, Mastercard’s head of digital assets and blockchain, bringing together the expertise and capabilities of these partners will drive innovation in the central banking community and along the CBDC value chain as the space continues to evolve.

Mastercard is launching this program at a time when there is growing interest in CBDCs globally. The payments firm cites data from the Bank for International Settlements, stating that 93% of central banks are involved in CBDC-related development.

According to a survey conducted in July 2023, 24 central banks have plans to release their own CBDCs by the end of the decade.

This indicates that CBDCs are a growing trend in the technology and economy sectors, being adopted by many governments worldwide.

However, as with any innovation, the risks associated with CBDCs must also be taken into account. With their increasing popularity, the potential hazards of CBDCs are also receiving more attention.