Mastercard announced on Wednesday it has launched a central bank digital currencies (CBDCs) testing platform to enable central banks to assess and explore national digital currencies. According to Mastercard, CBDCs are designed to be equivalent in value to a nation’s paper currency and subject to the same government-backed guarantees. In addition to printing money, central banks can issue CBDCs as a digital representation of a country’s fiat currency.
Mastercard reported that central banks, commercial banks, and tech and advisory firms are invited to partner with Mastercard to assess CBDC tech designs, validate use cases and evaluate interoperability with existing payment rails available for consumers and businesses. While sharing more details about the platform, Raj Dhamodharan, Executive Vice President of Digital Asset and Blockchain Products and Partnerships at Mastercard, stated: