When it comes to the crypto industries it has spread its wings in different sectors of the world. With the world being advance now the central banks are also looking for an opportunity to support the crypto industries while maintaining its monetary stability.
Yes, you heard it right. As per the recent report, Mastercard launches a platform called Central Bank Digital Currencies (CBDCs). This will surely help the central banks to explore and assess the digital currencies. To be very specific this platform helps in the issuance, distribution, and exchange of the CBDCs among the financial service providers, banks, and its customers.
In addition, Mastercard is providing an opportunity to partner with it to different sectors including the commercial banks, central banks, advisory firms in order to assess the CBDC tech designs, validate use cases and evaluate interoperability.
As we know that Mastercard is a leader in managing several payment rails and also ensure the safe and secure working of the digital currencies. The experts involved are highly skilled in the practical aspect of virtual currencies.
Sheila Warren Head of Blockchain, Digital Asset and Data Policy at the World Economic Forum mentioned: “Collaborations between the public and private sectors in the exploration of Central Bank Digital Currencies can help central banks better understand the range of technical possibilities and capabilities available with respect to CBDCs.”
The interesting point is that the CBDCs are structured similarly to the country’s paper notes and are backed by the government guarantee. Moreover, the government can issue these CBDCs along with paper currency to mark the fiat currency of the nation.
Features of the Platform:
It is true that every central bank has its own working pattern and Mastercard understands it well. Therefore, the virtual platform is designed in such a manner that the central banks can operate it as per the requirement making it eco-friendly for the users. The special features of the platform are provided here:
- Allow the issuance, exchange, and distribution of CBDCs between banks and consumers.
- Explain the process of using CBDC for making payments where Mastercard is accepted.
- Evaluate the CBDC tech design, utilize the cases to evaluate the value prevailing in the market.
- Evaluate the function, security issues, test the design of the CBDC.
The current survey by the Bank for International Settlements shows that around 80% of the central banks surveyed are involved in some of the other forms of CBDC work. Moreover, 40% of the banks have evolved after experimenting with the design and function of CBDC. Thus, it can be said that the CBDC has a bright future.