Mastercard Calls for Crypto Collaboration on CBDC Program

Credit giant Mastercard is seeking partnerships with blockchain and crypto companies for its central bank digital currency (CBDC) program. The firm recognizes the potential benefits of programmable money and aims to expand its partner program. In a recent blog post, Mastercard highlighted the growing interest in CBDCs, with 93% of central banks currently engaged in CBDC work.

Key Points:

CBDs have gained significant traction, with four already in circulation and 93% of central banks involved in CBDC work.
Mastercard has launched the CBDC Partner Program, with initial partners including Ripple, ConsenSys, and Fireblocks.
The program aims to address key questions around CBDC roles, security, privacy, and integration with existing systems.
Partners will work together to define CBDC requirements, ensure privacy, enable offline use, and build interoperability.
Jesse McWaters, from Mastercard, emphasizes the need for collaboration and developing CBDCs that provide new value to the economy.

While CBDCs are gaining global interest, concerns over privacy and government control remain. However, the Atlantic Council’s CBDC tracker reveals that 130 countries, representing 98% of global GDP, are exploring CBDCs. Eleven countries have already launched a CBDC, and 21 are currently piloting one. While some politicians have expressed concerns over privacy and central authority control, the momentum towards CBDC implementation continues.

Hot Take: Mastercard’s move to collaborate with blockchain and crypto companies for its CBDC program reflects the growing recognition of the potential of programmable money. With the majority of central banks involved in CBDC work, the partnership program aims to address key challenges and ensure the development of CBDCs that offer value to the economy. While concerns remain, the global exploration and implementation of CBDCs emphasize their growing significance in the future of finance.