Mastercard launched a cryptocurrency testing platform for central banks and fina

[Burgalin_LLC]

Mastercard announced this Wednesday, August 9, a virtual test environment, which will allow central banks to evaluate the use cases of central bank cryptocurrencies (CBDC). The platform, Mastercard notes, enables the simulation of CBDC issuance, distribution and exchange between banks, financial service providers and consumers.

In addition to inviting central banks to test the platform, Mastercard notes that it can be useful for commercial banks and financial and technology consultants. It invites these instances "to evaluate CBDC technology designs, validate use cases, and evaluate interoperability with the payment mechanisms that are available today to consumers and organizations."

Central banks have accelerated their exploration of digital currencies with various goals, from driving digital inclusion to modernizing the payments ecosystem. […] This new platform supports central banks in making decisions, now and in the future, on the way forward for local and regional economies.

CBDCs are designed, Mastercard notes, to be equivalent in value to national currencies, and are subject to the same guarantees to back them up. Among the various operating models for CBDC, the most widely used approach is issuance and distribution through commercial banks.

Among the characteristics of the announced platform, the main one is to simulate the issuance of CBDC, its distribution and exchange with banks and consumers. It also defines how CBDC can interact with existing payment networks and infrastructures, Mastercard says.

On the other hand, the proposed platform allows to show how a consumer can use a CBDC to pay for goods and services wherever Mastercard is accepted. The market viability of various designs and use cases of a CBDC can be evaluated with this platform.

80% of central banks that participated in a survey conducted by the Bank for International Settlements, are involved in some type of work with CBDC. 40% of central banks have gone from the conceptual research stage to experimenting with designs, according to the query.

CBDCs could accelerate a transformation of the global financial system. That possibility arose from Facebook's proposal for Libra, a cryptocurrency that would be independent of any national jurisdiction and to which the almost 3 billion users who access Facebook on a monthly basis would have access. In this Mastercard proposal, the use of CBDC in different jurisdictions is also considered

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[Burgalin_LLC]

As we can see every day, companies like mastercard see blockchain as a safer alternative and with higher profits for them since we know that for example, moving 100 usd from the USA to Nicaragua, banks charge up to triple the transaction for taxes For example, the costs of moving from the US to Nicaragua are $ 35-50 usd per transaction plus 15% additional taxes and fees, but with blockchain this would be drastically reduced, hopefully more news about mastercard visa and amex about this initiative;)

[jackg]

I hope we see a few companies hashing it out in the space and trying to be competitive against each other. One or two companies working just because they have a good name sounds like a bad idea (ie mastercard and visa)...

I don't know if cbdcs really aew a good route to go down as some countries don't like people holding foreign currency and that could continue and may be extended to other countries (which could include bitcoin). Much likd the American ban in the past of owning gold.

And as long as we have something secure that isn't as expensive and unaccepted as Amex then this might be good for making international payments cheaper.

[Burgalin_LLC]

I hope we see a few companies hashing it out in the space and trying to be competitive against each other. One or two companies working just because they have a good name sounds like a bad idea (ie mastercard and visa)...

I don't know if cbdcs really aew a good route to go down as some countries don't like people holding foreign currency and that could continue and may be extended to other countries (which could include bitcoin). Much likd the American ban in the past of owning gold.

And as long as we have something secure that isn't as expensive and unaccepted as Amex then this might be good for making international payments cheaper.

I mention amex, visa and mastercard because they are the most used international means of payment and also because having all 3 with blockchain technology would increase the offer and therefore companies would give promotions or some way to attract customers as in all businesses increasing the offer. the supply price is better and thus there is also more demand

[jackg]

I mention amex, visa and mastercard because they are the most used international means of payment and also because having all 3 with blockchain technology would increase the offer and therefore companies would give promotions or some way to attract customers as in all businesses increasing the offer. the supply price is better and thus there is also more demand

I thought I mentioned them?.
My point with Amex was they're not accepted in many places due totthe high fees..

Realistically I'd like to see banks team up with supermarkets or supermarkets owning banks (like tesco have a bank in the UK). So the company can manage everything for the customer if the customer wants them to and they will still get faster payments - even if done via a blockchain.

[avikz]

Mastercard holds not less than 80 patents of blockchain technology. While Alibaba group is leading the race, Mastercard is also not staying behind. They understand the business and whatever they are doing is for the future business opportunities. A lot of countries have either started researching about the CBDC and some countries like China has already started issuing CBDC for testing. So Mastercard very well understand the future prospect of such technology and trying to stay within the game.

By now, it has become pretty much evident that trustless & decentralized cryptocurrencies will never become the main or even reserve currency of any country. Rather CBDCs will rule the future financial landscape. So it's just a try for Mastercard to stay in the game!