MASTERCARD announced September 9 the launch of a central bank digital currencies (CBDCs) testing platform to enable central banks to assess and explore national digital currencies. The platform enables the simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers.
The testing tool comes as the global economy embraces digital payments and central banks investigate how to support innovation while maintaining monetary policy and financial stability as they issue and distribute currency.
According to a recent survey by the Bank for International Settlements, 80% of central banks surveyed are engaging in some form of CBDCs work, and about 40% of central banks have progressed from conceptual research to experimenting with concept and design.
To that end, central banks, commercial banks, and tech and advisory firms are invited to partner with the payments giant to assess CBDCs tech designs, validate use cases and evaluate interoperability with the existing payment rails currently available for consumers and businesses.