Tag: CBDC

Mastercard Creates Sandbox For CBDC Testing

A recent press release from Mastercard announced that they had created a platform for central bank digital currencies (CBDC). CBDC is central bank money, a digital version of cash. Like cash, CBDC is aimed at peer to peer payments. Like many conversations involving public financial utilities like a central bank the private sector not only wants to build the solution, but also control access to it. This is far from the ethos of cash; which many people have described as printed liberty. The private sector distributes cash, but once they have done so, cash is free to be used between natural persons, retail businesses.

Mastercard has invited central banks, commercial banks and tech and advisory firms to partner with them to evaluate the suitability of CBDC in their region. The sandbox will feature a “proprietary testing platform”. The platform may incorporate blockchain technology similar to many CBDC proof of concepts.

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Mastercard announces CBDC testing platform

Payments giant Mastercard is taking a leap of faith into the digital currencies sector, according to an announcement on Wednesday.

The decision to “begin testing” of its Central Bank Digital Currency (CBDC) platform comes after a setback in the development of a CBDC by 13 major central banks.

Mastercard EVP Raj Dhamodharan told Fortune that the company is already a number of central banks and that it is inviting more tech companies to test out the platform.

The movement to create a centralised digital currency on a national level is clearly gathering momentum following Facebook’s proposed Libra project, which is a digital currency that will use the blockchain for transactions.

Considering the impact of Mastercard’s announcement on CBDCs, Blockdaemon CEO Konstantin Richter said: “The development of Mastercard’s testing platform presents a significant opportunity for newcomers to the crypto space, by lowering the barrier to entry for users interested in getting

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Mastercard launches customizable CBDC testing platform

Mastercard has launched a “virtual and custom” testing platform that will allow central banks to evaluate digital currency systems.

According to an announcement published on Wednesday, the platform will facilitate an environment where banks, financial service providers, and consumers can partner to simulate the issuance, distribution, and exchange of central bank digital currencies (CBDCs) and evaluate customized CBDC use cases. 

“Central banks have accelerated their exploration of digital currencies with a variety of objectives, from fostering financial inclusion to modernizing the payments ecosystem,” said Raj Dhamodharan, Mastercard’s executive vice president for digital assets and blockchain products and partnerships said in a statement. “This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies.” 

According to the company, the testing platform can be used to demonstrate how CBDCs might “interface with existing payment networks and infrastructures” and how

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