{"id":57208,"date":"2023-08-21T07:52:09","date_gmt":"2023-08-21T11:52:09","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=57208"},"modified":"2023-08-21T07:52:13","modified_gmt":"2023-08-21T11:52:13","slug":"mastercard-teams-up-with-blockchain-firms-to-explore-cbdcs","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/mastercard-teams-up-with-blockchain-firms-to-explore-cbdcs\/","title":{"rendered":"Mastercard Teams Up with Blockchain Firms to Explore CBDCs"},"content":{"rendered":"\n<p>Mastercard launches a <a href=\"https:\/\/coinscreed.com\/staging\/bank-of-england-might-establish-cbdc.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">CBDC <\/a>Partner Program with seven leading crypto and blockchain companies, including Ripple, ConsenSys, and Fireblocks, to explore the benefits and challenges of digital currencies.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"900\" height=\"600\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/mastercard-cbdc.jpg\" alt=\"Mastercard Teams Up with Blockchain Firms to Explore CBDCs\n\" class=\"wp-image-57210\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/mastercard-cbdc.jpg 900w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/mastercard-cbdc-300x200.jpg 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/mastercard-cbdc-768x512.jpg 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/mastercard-cbdc-750x500.jpg 750w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/figure>\n\n\n\n<p><a href=\"https:\/\/coinscreed.com\/staging\/mastercard-to-build-blockchain-app-store-for-financial-apps.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Mastercard,<\/a> one of the world\u2019s largest payment-processing companies, has launched a new initiative to explore the benefits and challenges of central bank digital currencies (CBDCs) with seven prominent crypto and blockchain firms, as it announced on Aug. 17.<\/p>\n\n\n\n<p>CBDCs are digital versions of fiat currencies issued and regulated by central banks. <\/p>\n\n\n\n<p>According to the <a href=\"https:\/\/www.kitco.com\/news\/2023-07-10\/BIS-survey-says-93-of-central-banks-are-working-on-CBDCs-24-could-be-circulating-by-2030.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Bank for International Settlements (BIS),<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a> <strong>93%<\/strong> of the world\u2019s central banks are working on CBDCs, but their efforts have not captured the public\u2019s attention as much as cryptocurrencies have. <\/p>\n\n\n\n<p>However, Mastercard believes that CBDCs have the potential to have an even bigger impact on our everyday lives.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-cbdc-partner-program-and-pilot-projects\">The CBDC Partner Program and Pilot Projects<\/h3>\n\n\n\n<p>To address the questions and opportunities that CBDCs present, Mastercard has formed a CBDC Partner Program with leading blockchain technology and payment service providers <strong>\u201cto foster collaboration with key players in the space so they can drive innovation and efficiencies.\u201d<\/strong><\/p>\n\n\n\n<p>The seven initial partners joining Mastercard in the program are:- <strong>Ripple, Consensys, Fluency, Idemia, Consult Hyperion, Giesecke+Devrient, and Fireblocks<\/strong><\/p>\n\n\n\n<p>As part of the CBDC Partner Program, Mastercard and its partners will work on various pilot projects to test and demonstrate the feasibility and functionality of CBDCs. <\/p>\n\n\n\n<p>Some of the pilot projects that have already been launched or announced are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fluency has worked on building interoperability among different CBDCs using its Fluency Network Protocol (FNP), which allows a seamless exchange of value across different blockchains and networks.<\/li>\n\n\n\n<li><a href=\"https:\/\/chyp.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Consult Hyperion<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> has worked with central banks and payment processors to define their CBDC requirements and design their CBDC systems using its Digital Fiat Currency (DFC) framework, which provides a modular approach to CBDC implementation.<\/li>\n\n\n\n<li>Ripple has launched an inaugural government-issued national stablecoin in collaboration with the <a href=\"https:\/\/ripple.com\/ripple-press\/republic-of-palau-launches-us-dollar-backed-palau-stablecoin-in-the-next-phase-of-collaboration-with-ripple-on-the-xrp-ledger\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Republic of Palau,<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> in addition to working on four CBDC pilots using its RippleNet platform, which leverages the XRP Ledger (XRPL), a carbon-neutral blockchain that supports fast and low-cost transactions.<\/li>\n<\/ul>\n\n\n\n<p>Mastercard said that CBDCs offer numerous advantages to different stakeholders in the economy, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Consumers: CBDCs can enable more people to access financial services, pay lower fees for transactions, settle payments faster, and choose from more payment options.<\/li>\n\n\n\n<li>Merchants: CBDCs can help businesses reduce their operational costs, increase their sales volumes, and improve their customer loyalty.<\/li>\n\n\n\n<li>Governments: CBDCs can help authorities improve their monetary policy effectiveness, increase their transparency and compliance, and foster their economic growth.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The Prospects for CBDCs<\/h3>\n\n\n\n<p>Mastercard further stated that it believes in payment choice and interoperability across different payment methods. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cAs 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,\u201d<\/p>\n<cite>Raj Dhamodharan, head of digital assets and blockchain at Mastercard.<\/cite><\/blockquote>\n\n\n\n<p>Mastercard also invited more crypto companies to join its CBDC Partner Program and contribute to the development of CBDCs. <\/p>\n\n\n\n<p><em>\u201cWe welcome any organization interested in advancing this important work to join us,\u201d<\/em> Dhamodharan said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mastercard launches a CBDC Partner Program with seven leading crypto and blockchain companies, including Ripple, ConsenSys, and Fireblocks, to explore the benefits and challenges of digital currencies. Mastercard, one of the world\u2019s largest payment-processing companies, has launched a new initiative to explore the benefits and challenges of central bank digital currencies (CBDCs) with seven prominent [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":57210,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[130],"tags":[12094,773,1560],"class_list":["post-57208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","tag-adoption-2","tag-cbdc","tag-mastercard"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/mastercard-cbdc.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/57208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=57208"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/57208\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/57210"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=57208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=57208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=57208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}