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Mastercard has introduced a central bank digital currency (CBDC) partner programme that includes notable firms like Ripple and ConsenSys, as part of an initiative to foster collaboration across the CBDC ecosystem.

With the majority of central banks globally engaged in CBDC development and four retail versions already in circulation, Mastercard has taken a proactive stance. In 2020, the company established a virtual testing platform aimed at assisting central banks in evaluating and exploring national digital currencies. Since then, Mastercard has been involved in piloting CBDC projects with various central banks.

Jesse McWaters, the head of global regulatory advocacy at Mastercard, acknowledges the need to address crucial aspects of CBDC implementation, such as private sector involvement, security, privacy, and interoperability. Questions persist about how CBDCs align with existing payment mechanisms, the problems they specifically address, and their suitability for the intended purpose.

In response to these challenges, Mastercard has launched a partner programme, bringing together industry players like Fluency, Idemia, Consult Hyperion, Giesecke+Devrient, and Fireblocks. These partners are actively contributing to different aspects of CBDC development. Fluency is focusing on creating interoperability between various CBDCs, Consult Hyperion is collaborating with central banks and payment processors to define CBDC requirements, and Ripple is collaborating with the Republic of Palau to introduce a government-issued national stablecoin.

Raj Dhamodharan, Head of Digital Assets and Blockchain at Mastercard, emphasizes the importance of payment choice and interoperability for a robust economy in the digital era. He envisions CBDCs as easy-to-use assets, comparable to other forms of currency, as the world moves towards a digitally driven financial future.

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