On September 09, 2020 Mastercard launched Central Bank Digital Currencies (CBDCs), a Virtual Testing Environment for Central Banks to Assess and Explore National Digital Currencies.
i.Mastercard has invited Central Banks, Commercial Banks and tech and advisory firms to evaluate the suitability of CBDCs in a country or region.
ii.The testing platform will allow central banks to evaluate use cases and test roll-out strategies for CBDCs by simulating a CBDC ecosystem.
iii.Using the platform they can enable simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers.
iv.They can validate use cases and evaluate interoperability with existing payment rails available for consumers and businesses currently.
Bank for International Settlements Survey:
According to a recent survey by Bank for International Settlements, 80 percent of Central Banks are engaged in some form of CBDCs work and 40 percent of Central Banks have progressed from conceptual research to experimenting with concept and design.
National Digital Currencies:
Some of the Countries with National Digital Currencies are
- The Central Bank of Uruguay issued digital Banknotes “e-Peso” for domestic purposes.
- Central Bank of Bahamas “Project Sand Dollar” – Pilot Project for general purpose, account-based CBDC for domestic use only.
- Central Bank of Sweden – “e-Krona” is under testing.
- People’s Bank of China (PBOC) – “e-RMB” being implemented in major cities of China, including Shenzhen, Suzhou and Chengdu, and Xiongan New Area.
- India’s Digital Rupee is still under research stage.
Recent Related News:
i.On June 24, 2020, IBMC Financial Professionals Group in partnership with US Gold Currency Inc and Blockfills introduced the world’s first monetary gold-backed US Gold digital currency in India, Gulf Cooperation Council (GCC), Middle East and Africa.
Chief Executive Officer – Ajay Banga
Headquarters – New York, United States