Mastercard to launch sandbox for testing national digital currencies

Mastercard announced a virtual environment for testing central bank digital currencies (CBDCs). This is stated in a пресс-релизе.

The project is a controlled environment in which banks can model the issuance of national digital currencies. The result will be an assessment of their interoperability with the existing payments ecosystem and the practicality of using CBDCs.

“This new platform will support central banks in making decisions about the development of local and regional economies,” said Raj Dhamodharan, Vice President of Digital Assets and Blockchain Products at Mastercard.

Mastercard did not specify what software is used in the project. It is known only that it employs distributed ledger technology.

Earlier, independent analysts from the dGen Institute suggested that within ten years three to five countries will fully abandon fiat in favor of national digital currencies. The authors of the report do not provide exact statements, but point to China and the Bahamas.

According to the Bank for International Settlements, as of early 2019, CBDC was undertaken by 70% of central banks. This interest is driven by rising competition and financial inclusion, as well as the expansion of fiscal policy tools.

Earlier, the Central Bank of Brazil began developing the instant payments system PIX and integrating remote servicing as part of an open banking project. The next step is expected to be the launch of the digital real by the end of 2022.

For details on how central banks are working to create CBDCs, and the conclusions they have drawn from studies and experiments, read ForkLog:

How and why central banks are creating digital currencies (CBDCs)

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