Mastercard Will Help Central Banks To Test Their CBDCs

Mastercard will help central banks to test their digital currencies by launching a digital currency testing kit as we are reading in today’s cryptocurrency news.

The international payments provider Mastercard will help Central Banks to launch a virtual testing environment to help the central banks across the world to test their Central Bank Digital currencies as we can read from their announcement:

 “Today, Mastercard announced a proprietary virtual testing environment for central banks to evaluate CBDC use cases. The platform enables the simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers.”

According to the announcement, the efforts will allow the banks to test whether the central bank’s digital currencies fit them and can be eventually issued locally or regionally:

 “The virtual platform can be individually customized to the environment in which the central bank operates, allowing them to […] simulate a CBDC issuance, distribution and exchange ecosystem with banks and consumers, including how a CBDC can interface with existing payment networks and infrastructures – e.g., cards and real time payments.”

The project aims to show how central bank digital currencies can be used in everyday life and what are the forms that are feasible in the current market. Raj Dhamodharan, the executive vice president of the digital asset and blockchain products and the partnership at Mastercard said:

 “Central banks have accelerated their exploration of digital currencies with a variety of objectives, from fostering financial inclusion to modernizing the payments ecosystem.”

The major competitor of Mastercard, Visa, laid out the platform approach to the crypto community recently. So is it finally time for companies to cement their places in the crypto industry?

As recently reported as well, A new Mastercard IOTA patent will provide a Tangle-based billing system according to the latest application by the credit card provider. The company filed for a patent of a new billing system that will share devices such as printers and photocopiers. The filing mentions IOTA’s tangle technology as well as other blockchains. The Mastercard IOTA patent will provide a new billing system based on the Tangle and the concept is detailed in the application titled “Method and System for Device Micropayment Aggregation based on the Tangle Network.”

The patent application described the approach as a billing device usage via a transparent storage system so the method can be used to bill for library or “maker space” devices such as 3D printers, photocopiers, and computer printers.