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Mastercard is partnering with seven blockchain and payment technology providers to explore the potential and challenges of central bank digital currencies (CBDCs). 
The specific plans for the collaboration remain under wraps in the payment giants’ Aug. 17 <a href="https://www.mastercard.com/news/perspectives/2023/cbdcs-trust-and-the-evolution-of-money/" target="_blank" rel="noopener noreferrer nofollow">announcement</a>. 
Mastercard has highlighted key areas of interest in the CBDC realm, such as security, privacy, interoperability, and innovation. 
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 We’re partnering with several central banks to help them research new digital currencies projects. It starts with understanding what they want to achieve with this technology, then building in transparency, consumer privacy and stability. We’re working toward those goals with a…— Michael Miebach (he/him/his) (@MiebachMichael) <a href="https://twitter.com/MiebachMichael/status/1692175629293363616?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 17, 2023</a> 
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Raj Dhamodharan, Mastercard’s head of digital assets and blockchain, emphasized the significance of these aspects. 
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 “We believe in payment choice and that interoperability across the different ways of making payments is an essential component of a flourishing economy. 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.” <cite>Raj Dhamodharan, Mastercard’s head of digital assets and blockchain</cite> 
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CBDCs, though not cryptocurrencies, are related to them. They could utilize blockchain technology, the same ledger system that underpins cryptocurrencies like Bitcoin. Essentially, a CBDC would be a digital version of a fiat currency like the US dollar endorsed by the government. 
 You might also like: <a href="https://crypto.news/exploring-the-early-cbdc-adoption-results-beyond-the-hype/" rel="noopener noreferrer nofollow"> Exploring the early CBDC adoption results beyond the hype </a> 
The partnership will unite companies already playing significant roles in CBDC development. This includes Ripple, which has launched a <a href="https://crypto.news/ripple-launches-cbdc-and-stablecoin-issuance-platform/" rel="noopener noreferrer nofollow">dedicated CBDC platform</a>; software firm ConsenSys, known for its involvement in several<a href="https://crypto.news/hong-kong-financial-authority-taps-consensys-for-cross-border-cbdc-pilot-study/" rel="noopener noreferrer nofollow"> CBDC initiatives</a>; and tokenized assets solution provider Fluency, engaged in 23 CBDC projects. 
Other participants are Giesecke+Devrient, which has<a href="https://crypto.news/ghana-german-technology-partner-cbdc-pilot-project/" rel="noopener noreferrer nofollow"> collaborated with the central banks of Ghana</a> and Thailand; Idemia, specializing in offline payments; Consult Hyperion, working with major banks on offline payment solutions; and institutional custody platform <a href="https://crypto.news/metamask-and-fireblocks-join-forces-to-offer-institutional-investors-secure-defi/" rel="noopener noreferrer nofollow">Fireblocks</a>. 
Mastercard’s history of innovation in the digital asset ecosystem, particularly in the CBDC space, is well-established. Earlier in 2021, the company<a href="https://www.mastercard.com/news/press/2021/february/mastercard-and-island-pay-launch-world-s-first-central-bank-digital-currency-linked-card/" target="_blank" rel="noopener noreferrer nofollow"> introduced a prepaid card</a> for Bahamians to utilize the country’s first CBDC. 
More recently, Mastercard disclosed plans to establish a testbed to study tokenized bank deposits in the UK, with an eye towards including CBDCs and regulated stablecoins. 
 Read more: <a href="https://crypto.news/mastercard-unveils-multi-token-network/" rel="noopener noreferrer nofollow"> Mastercard unveils multi-token network </a>

Mastercard partners with blockchain leaders to explore CBDCs

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