The Mastercard payment system introduced a virtual environment for testing state cryptocurrencies from central banks of different countries.
Mastercard executives explained that the platform is a virtual environment in which central banks can explore the potential of their digital currencies and simulate practical use cases. The platform will be able to simulate the issuance of government stablecoins and their distribution, as well as the execution of transactions between banks, financial service providers and customers. The Mastercard solution will also demonstrate how digital currencies from the Central Bank can be used by ordinary people to pay for goods and services in any regions where Mastercard cards are accepted.
Payment giant Mastercard has invited central and commercial banks, as well as technology and consulting firms, to participate in the testing. At the same time, Mastercard management understands that each central bank uses different methods of researching government cryptocurrencies, so the platform will be adapted to the legal environment of each bank. Thus, banks will be able to analyze whether their digital currency meets the needs of a particular region or an entire country.
Sheila Warren, head of blockchain development and distributed ledger technology at WEF, said that the interaction of the private and public sectors in the study of stablecoins from the Central Bank will help banks to better understand the capabilities of the blockchain and how digital currencies work. Raj Dhamodharan, Executive Vice President of Digital Assets and Blockchain at Mastercard, said central banks are actively exploring the possibility of issuing their own digital currency. These assets can be used for a variety of purposes, both to provide broad access to financial services and to modernize the payment system.
“The Mastercard solution will drive innovation in the public sector. This will be facilitated by banks and all firms that share our core values. The platform will provide the necessary support for central banks, which are making the right decisions now, paving the way for the prosperity of the local economy, ”Damodaran added.
As a reminder, this summer Mastercard allowed cryptocurrency debit card issuer Wirex to directly issue Mastercard payment cards to its customers. Additionally, in February, Mastercard became a member of the Blockchain Education Alliance, which supports blockchain education at universities around the world.