Mastercard, a global payment giant, has taken a significant stride by unveiling its CBDC Partner Program. Ripple and ConsenSys are key participants, aiming to accelerate the growth of central bank digital currencies (CBDCs). The cumulative goal is to explore and develop innovative digital currency projects focusing on transparency, stability, and consumer privacy.
In an announcement on Friday, August 17, Mastercard revealed its strategic initiative designed to collaborate with multiple central banks to explore novel digital currency avenues. The program provides a collaborative platform that brings together leaders from the blockchain and payment sectors, pooling their expertise to spur innovation.
The Mastercard initiative will unite firms that have made diverse contributions to CBDC advancement. Notably, Ripple joins with its specialised CBDC platform, while ConsenSys, a software company, has actively engaged in numerous CBDC endeavours.
Mastercard's move, under the leadership of CEO Michael Miebach, aligns with the growing interest in CBDCs. According to a 2022 Bank of International Settlements (BIS) survey, 93 percent of central banks actively engage in CBDC-related work. This includes retail and wholesale CBDCs, aiming to have several in circulation by 2030.
Raj Dhamodharan, head of digital assets and blockchain at Mastercard, highlighted the need for CBDCs to be user-friendly and easily accessible, comparable to traditional forms of money. The CBDC Partner Program aims to leverage the expertise of partners like Ripple and ConsenSys to contribute insights for the successful implementation of CBDCs.
Ripple's participation in the program aligns with its ongoing efforts in the CBDC market. The company has partnered with various countries, including Palau, Montenegro, Hong Kong, Colombia, and Bhutan, showcasing its commitment to CBDC innovation.
As central banks continue to explore the potential of CBDCs, collaborations like Mastercard's CBDC Partner Program with Ripple and ConsenSys play a crucial role in advancing digital currency technology, ensuring its integration into the financial ecosystem while maintaining essential principles of privacy and security.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash