Mastercard rolled out a testing platform for CBDC

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Sep 10, 2020
  • One of the leading credit card firms, Mastercard, just launched a new platform for CBDC testing.
  • The platform is meant to allow banks and financial institutions to simulate any aspect of CBDC development.
  • With central banks around the world planning their own coins, there is a great need for a testing environment.

The credit card giant, Mastercard, recently launched a new testing platform that will help central banks with conducting tests of their CBDCs. The platform is highly customizable, and as such, it will allow precise evaluations of cryptocurrency systems.

What is the new platform all about?

Mastercard published the announcement revealing its new platform yesterday, September 9th. The company stated that the platform offers an environment for financial service providers and their partners to simulate everything regarding CBDCs.

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Simply put, banks and their collaborators can test issuing CBDCs, distributing the coins, and even exchanging them. Furthermore, they can also test and evaluate their use cases.

Mastercard’s executive VP, Raj Dhamodharan, stated that the central banks have accelerated their exploration of cryptocurrencies recently. They now have a large variety of objectives, that go from fostering financial inclusion, to the modernization of the entire payments ecosystem. “This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies,” he added.

CBDC trend continues to rise

Obviously, the need for the central banks to have a trusted and competent testing environment has increased, ever since China announced the development of its own CBDC.

Many of the world’s central banks have since started studying, developing, and even testing their own coins. Now, they have a specialized environment for doing it — one that would likely help them uncover potential flaws, as well as previously unknown benefits of their systems.

The company further added that the testing platform can demonstrate how central bank digital currencies could interface with current payment networks and infrastructures. It can also show how consumers could use cryptos to buy products from merchants who collaborate with Mastercard.

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