[NEW] Mastercard launches CBDC partner program with participation from Ripple, ConsenSys, and others

On the 17th, US payment giant Mastercard announced that it will launch a "CBDC Partner Program" to discuss and deepen understanding of CBDC (Central Bank Digital Currency).

Mastercard explained the purpose of launching the program as "to promote collaboration with leading companies in the field and to promote innovation and efficiency."

Through the program, they will discuss the advantages and limitations of CBDC, as well as its introduction in a safe and seamless manner.

The first partners include eight companies, including Ripple, Consensys, which develops MetaMask, tokenized asset solution provider Fluency, and Fireblocks, a digital asset management platform.

Mastercard cited data from the Bank for International Settlements (BIS) that 93% of central banks around the world are currently working on CBDC, and noted that four retail CBDCs are already in circulation.

In addition, according to the BIS, 24 types of CBDCs may be in circulation over the next 10 years, but two-thirds of the world's central banks said they are unlikely to issue digital currencies for people to use in their daily lives.

The reasons cited include the difficulty of privacy management and the fact that it is difficult for ordinary people to use digital currencies easily compared to regular fiat currencies. In addition, they point out that concerns about digital currencies themselves are growing due to the stagnation of the cryptocurrency market, known as the "cryptocurrency winter," and scandals by related companies.

Mastercard explained that it launched the CBDC Partner Program to overcome these challenges in light of the BIS's comments on CBDC. It then stated that central banks need to communicate and build trust in order to make CBDCs successful in the next few years.

Furthermore, it argues that CBDCs should not be introduced by each country alone, but should be developed jointly around the world. Therefore, Mastercard emphasized that the CBDC Partner Program by Mastercard will help countries around the world develop CBDCs.

"The combined strengths, expertise and technologies of our selected partners will help drive innovation as the central bank community and CBDC value chain continue to evolve," the announcement said.

Source:announcement
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