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Mastercard has launched an innovative custom testing platform that allows central banks to test and evaluate CBDCs.

As a virtual custom testing platform, it enables the simulation of issuance, distribution and even the exchange of CBDCs between banks, financial service providers, and consumers. The platform demonstrates how a CBDC can be used by a consumer to pay for goods and services.

According to a report by the Bank for International Settlements(BIS), 80% of central banks are engaging in some sort of work around CBDCs, with some 40% having progressed from conceptual research to experiments, and another 10% having already developed pilot projects. This new platform by Mastercard will likely make the testing process much more simple, encouraging more central banks to start the testing phase.

Raj Dhamodharan, Executive Vice President of Mastercard said:

“Mastercard is driving innovation with the public sector, banks, fintechs, and advisory firms in the exploration of CBDCs, working with partners that are aligned to our core values and principles. This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies.”

Over the past few years, Mastercard have been very welcoming to innovation around money, and expressed keen interest in the development of digital currencies. 

Mastercard recently announced the expansion of its cryptocurrency card program, inviting crypto firms to join the program.

Feature image by Alina Kuptsova from Pixabay 

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