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Mastercard Partners with Crypto Firms & Blockchain for CBDC Innovation

Key Takeaways
  • Mastercard collaborates with blockchain and crypto firms to assist central banks in creating valuable CBDCs
  • Majority of central banks (93%) exploring CBDCs; Mastercard's program involves key players like Ripple and ConsenSys
  • CBDCs face privacy and control worries; Mastercard's move highlights the convergence of traditional finance and digital currency
Mastercard Partners

Mastercard Partners with Crypto Giants for Global CBDC Initiative

Mastercard, the global giant in credit services, is actively looking to team up with blockchain and cryptocurrency companies for its Central Bank Digital Currency (CBDC) initiative. In a recent blog post titled "Is safe the new sexy? CBDCs, trust and the evolution of money," Mastercard highlighted the growing importance of CBDCs. They pointed out that 93% of central banks are engaged in CBDC projects, with four already in circulation.

Mastercard has launched its CBDC Partner Program to foster collaboration on blockchain-based currencies. Notable partners already on board include Ripple, ConsenSys, and Fireblocks.

Jesse McWaters, leading global regulatory advocacy at Mastercard, stressed the significance of CBDCs in the broader financial landscape. He stated that the Mastercard CBDC Partner Program aims to guide central banks in creating CBDCs that bring novel value to the economy. However, challenges remain. Varun Paul from Fireblocks noted the recent challenges in the crypto space but argued that such events actually support the case for CBDCs, which are backed by central banks and governments.

The Atlantic Council’s CBDC tracker revealed that 130 countries, representing 98% of global GDP, are exploring CBDCs. Eleven nations, mostly in the Caribbean and Nigeria, have already introduced their CBDCs. In the pilot phase, 21 countries, primarily in the Middle East and Asia, are testing CBDCs.

Yet, CBDCs are met with skepticism. Concerns about privacy and potential government control linger. US Congressman Tom Emmer introduced the CBDC Anti-Surveillance Act to safeguard Americans' financial privacy. Similarly, Representative Warren Davidson voiced doubts, asserting that money shouldn't be under the control of a central authority.

Mastercard's call for collaboration marks a pivotal moment where traditional finance converges with the realm of digital currency. 

Also, read - Oman Leads with Eco-Friendly $370M Bitcoin Mining Project

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