On Thursday, payments giant Mastercard announced that it is partnering with crypto-focused firms Ripple and Consensys on its central bank digital currency (CBDC) program. Termed the CBDC Partner Program, the initiative aims to “foster collaboration with the key players in the space so they can drive innovation and efficiencies.”
Although Mastercard didn’t reveal when it intends to launch the program, the payment giant aims to enlighten participants on the pros and cons of CBDCs and how to implement them seamlessly. The other partners for the inaugural program, aside from Ripple and Consensys, include; Fluency, Idemia, Consult Hyperion, Giesecke+Devrient, and Fireblocks.
Open to Innovation
“We believe in payment choice and that interoperability across the different ways of making payments is an essential component of a flourishing economy,” the head of digital assets and blockchain at Mastercard, Raj Dhamodharan, stated. “As 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,” he added.
Mastercard’s dive into CBDC, despite the concept being in its infant stages, shows just how the payment giant is able to adapt to evolving digital innovations. The second-largest payment processing firm launched a testing site for central banks to test-run the issuance and distribution of CBDC back in 2020.
Mastercard has also shown enormous support for cryptocurrencies, allowing banks and trading platforms to offer crypto services through its payment solution. The payment giant also partnered with asset providers in 2022 to enable the easy buying and selling of non-fungible tokens (NFTs).
Ripple Back on Track
The crypto network is shaking off the shackles of its prolonged case with the Securities and Exchange Commission (SEC). Since the partial victory ruling, a handful of crypto trading platforms have renewed their support for its token, XRP.
A partnership with a company as big as Mastercard also shows how highly rated the Ripple network is. Mastercard noted that Ripple’s launch of a US dollar-backed stablecoin for the Republic of Palau meant the network had the experience it needed for the program.
