Michael Miebach, CEO of Mastercard, a major US payment company, revealed at a quarterly financial results briefing that he is looking for smart contract technology for CBDC (Central Bank Digital Currency).
In February of this year, Miebach announced that he plans to introduce settlement of digital assets and will focus on privately-issued stable coins and CBDC.
MasterCard is already working with several central banks on CBDC related services. As an example, there is a history of releasing a prepaid card corresponding to the CBDC “Sanddol” issued by the Bahamas.
At this financial results briefing, he mentioned the possibility of smart contract technology at CBDC as a private company that cooperates with the central bank. “CBDC is still in its infancy … We are also investing in smart contracts because of the potential for practical use of’smart trade contracts’,” he said.
Especially in the Bahamas case, Miebach emphasized the renewed focus on providing infrastructure and mentioned the possibility of introducing smart contracts.
Miebach said several central banks, including the European Central Bank and the Bank of England, are planning the CBDC with a “two-step approach” in mind. The two-step approach is a system in which the central bank issues a CBDC, and private banks and payment companies provide it to users to develop related services.