Mastercard Announces Cooperation With Ripple For CBDC Program

MasterCard cooperates with Ripple for the central bank digital currency project or CBDC. (Photo; Doc. XRPDaily)

JAKARTA - The global payments giant, Mastercard, has taken significant steps in dealing with the increasingly strong trend of central bank digital currencies (CBDC).

On August 17, the company announced the launch of its CBDC Partner Program, with initial partners such as Ripple and ConsenSys. The move underscores Mastercard's commitment to supporting the development and adoption of CBDCs worldwide.

In a recent press release, Mastercard highlighted the importance of Central Bank Digital Currecies in the global financial landscape. Central banks in various countries have moved towards CBDC, and payment giants like Mastercard are also taking steps to deal with this trend.

The Mastercard CBDC Partner Program aims to leverage increased interest in CBDC to strengthen the company's position in the CBDC ecosystem. In collaboration with CBDC leaders and other payment giants, Mastercard will cooperate with the central bank in bringing CBDC to market in accordance with the prevailing regulatory framework.

Ripple, as one of the main players in the CBDC industry, was selected to be one of the early partners in the program. Mastercard sees Ripple's potential as a platform for CBDC, given Ripple's significant contribution in CBDC space. Recently, Ripple also launched its own CBDC Platform and teamed up with the Republic of Palau, an achievement that Mastercard acknowledged.

Raj Dhamodharan, who is in charge of digital assets and blockchain in Mastercard, stated that the program aims to encourage cooperation with key players in the CBDC industry. Dhamodharan underlined the importance of payment options and interoperability in developing economies.

This is not the first time Mastercard has been involved in developing CBDCs. In 2020, they introduced a testing platform to assist central banks in evaluating the CBDC system. In 2021, Mastercard began publishing prepaid cards in the Bahamas that allow the country's Sand Dollar conversion, CBDC.

In a recent podcast interview with The Block, Dhamodharan emphasized the importance of flexibility, consumer protection, and privacy in building CBDCs that provide innovative value for the economy and society.

Although details of this program have not been disclosed in detail, this step demonstrates Mastercard's commitment to helping the central bank create CBDCs that suit economic needs and contexts.