#Mastercard Launches #CBDC Initiative with #Ripple and #ConsenSys Collaboration

Global payment company Mastercard has initiated a partnership program aimed at exploring CBDC (Central Bank Digital Currency) innovations, involving blockchain industry firms such as Ripple, ConsenSys, and Fireblocks.

Mastercard highlighted that 93% of central banks worldwide are experimenting with digital currency in some form, with four retail CBDCs already in circulation. However, regulators need to address numerous questions, according to Jess McAulay, Senior Vice President of the company. These include:

1. The role of the private sector in CBDC issuance.

2. Security and confidentiality.

3. Compatibility – the ability of the asset to work with existing payment mechanisms.

McAulay emphasized the need to understand what issues CBDCs are addressing and whether they are a suitable instrument at all.

The convened group of blockchain technology and payment solution providers aims to gain a better understanding of the advantages and limitations of central bank digital currencies. The program also seeks to explore secure and seamless ways of implementing CBDCs. The initial partners in Mastercard's program include:

1. Fintech company Ripple.

2. Blockchain and Web3 software developer ConsenSys.

3. Multi-CBDC and tokenized asset solutions provider Fluency.

4. Digital identity technology provider Idemia.

5. Consultancy firm Consult Hyperion.

6. Cybersecurity group Giesecke+Devrient.

7. Digital asset operation platform Fireblocks.

The program's work will be based on Fluency's solutions for functional compatibility of various CBDCs, the results of Consult Hyperion's collaboration with central banks to define their asset requirements, and Ripple's launch of a national stablecoin for Palau.

According to McAulay, Mastercard's partnership program will help central banks understand how to develop a digital currency that adds something new and valuable to the economy.

Recall that in May, the payment giant launched pilot trials of tokenized bank deposits. $XRP