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Crypto News

Mastercard Launches CBDC Forum with Notable Crypto Players

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

mastercard

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Mastercard, the global payments leader, has established a forum to foster dialogue and collaboration on central bank digital currencies (CBDCs). As nations globally contemplate the possibility of transitioning their currencies to a digital format, Mastercard’s initiative ensures that key voices in the crypto arena are part of the conversation.

While CBDCs are closely related to cryptocurrencies, they differ in their nature. CBDCs can potentially be built on blockchain, the foundational tech behind Bitcoin and other cryptocurrencies, but primarily, they are digital representations of existing fiat currencies like the U.S. dollar. The key distinction lies in the governmental endorsement backing a CBDC.

Notably, the inaugural members of Mastercard’s CBDC Partner Program encompass renowned industry players like Ripple, Fireblocks, and Consensys, as disclosed by Mastercard recently.

Raj Dhamodharan, who heads Mastercard’s digital assets and blockchain division, highlighted the forum’s objective: stimulating discussions among crypto industry stalwarts, promoting innovation and streamlining processes. Dhamodharan emphasized Mastercard’s commitment to offering diverse payment options and stressed the importance of CBDCs in the future digital economy. He remarked, “Ensuring CBDCs are as user-friendly as other monetary formats will be pivotal in the evolving digital landscape.”

Mastercard is no stranger to the digital currency domain and has previously made significant strides in this space. One notable initiative occurred in early 2021 when Mastercard introduced a prepaid card in the Bahamas specifically for users keen on transacting with the nation’s CBDC, the pioneering CBDC globally.

Furthermore, Mastercard recently unveiled plans for a testbed focused on tokenized bank deposits in the U.K. This venture is set to expand its scope to incorporate CBDCs and regulated stablecoins in its future phases.