Payments Giant Mastercard Rolls Out A CBDC Partner Programme

Mastercard has launched a central bank digital currency partner programme that includes firms operating across the sector. Some firms that are now part of this partner programme include Ripple and Consensys.

Mastercard launches a CBDC partner programme

Mastercard has been exploring national digital currencies for several years. In 2020, Mastercard created a virtual testing platform set to help central banks assess and explore national digital currencies. The firm has since worked with many central banks to launch a pilot program for these offerings.

Jesse McWaters, who is a leader in global regulatory advocacy at Mastercard, noted that there were issues that needed to be addressed about the role played by the private sector in the issuance of central bank digital currencies (CBDCs). It also looks into how CBDCs can improve interoperability, privacy and security.

These offerings include how CBDCs can work alongside other payment mechanisms and the specific challenges that these offerings will address. Mastercard also wants to monitor whether CBDCs are the ideal tool needed for the job.

Mastercard is now working on answering some of these issues through supporting industry collaborations with this partner program. The programme has been created in partnership with firms such as Consult Hyperion, Idemia, Giesecke+Devrient, Fireblocks and Fluency.

Working with industry players for CBDC solutions

As aforementioned, one of the firms that will work with Mastercard on this partnership is Fluency. The efforts include working with Fluency to create interoperability among different CBDCs. Interoperability will ensure that users in different countries can use CBDCs to make payments.

Consult Hyperion is also working with payment processors and central banks to define the CBDC requirements. The payments firm will assess whether the requirements for a CBDC will meet the needs that people and businesses have.

On the other hand, Ripple has made much effort in relation to CBDCs. The company is planning to release the first government-issued national stablecoin by partnership with the Republic of Palau.

The head of digital assets and blockchain, Raj Dhamodharan, commented on this deal saying that the company believed in having a payments choice and interoperability solution that supported different of settling payments. Dhamodharan said that this offering was a major component in a flourishing economy.

“We believe in payment choice and that interoperability across the different ways of making payments is an essential component of a flourishing economy. As we look ahead toward a digitally driven future, it will be essential that the value held as a CBDC is as easy to use as other forms of money,” Dhamodharan said.

Giesecke+Devrient, which are located in Germany has created a reputation as having a public currency that dates back to 170 years. The firm started printing banknotes over a century ago, with its entry into the CBDC market marking a major shift in operations.

The company is now working on protecting physical and digital assets. Giesecke+Devrient is now working with central banks to launch digital currencies while providing a CBDC solution that supports secure offline payments.