Mastercard is preparing its infrastructure for the introduction of CBDC

During a profit talk with investors and stakeholders, Michael Miebach, Mastercard CEO spoke about his positive outlook for the cryptocurrency industry. Not only is the company seeing significant growth in consumers using its Mastercard cards to purchase cryptocurrencies, but it has also partnered with companies in the digital asset space. But Miebach’s more ambitious stance came during a debate on central bank-issued digital currencies, or CBDC for short, saying:

“Right now we’re saying that the most likely way this type of technology will work for payments is for it to be issued by a government in the form of CBDC to our network for when a government is ready to issue a CBDC that is next to our the dollar or euro exists as a settlement currency in our network. “

Miebach continued to trust Mastercard’s role in the matter, stating that “We can provide a safe space for government and private banks to find out how they’re going to really work.”

The CBDC talks continued to rapidly gain ground over the past year. Last October 21st, the Bahamas became the first country in the world to issue a CBDC known as the “Sand Dollar”. A few days later, the President of Nigeria, Muhammadu Buhari, announced that it would present its own CBDC project called “eNaira”.

Mastercard is preparing its infrastructure for the introduction of CBDC
Mastercard is preparing its infrastructure for the introduction of CBDC

According to Statistica, Mastercard processed 113 billion transactions worldwide last year, Just behind the 188,000 million Visa and 151,000 million Union Pay.

The third largest payment processor in the world has aroused great interest in the cryptocurrency space in recent months. On Monday, Mastercard announced it would partner with the Bakkt cryptocurrency market to enable its US customers to buy and sell digital currencies. In September, the company announced it would acquire blockchain analytics company CipherTrace to track illegal transactions in 900 different cryptocurrencies. However, CEO Miebach has taken a more risk-averse approach across the industry, as stated in the company’s third quarter conference call:

“Topics like the last mile: How to make citizens profit by starting a CBDC. Acceptance problems etc. So, by facilitating investment as an asset class, are we doing that and preparing for CBDCs a private sector stablecoin? We could do it too. But we have very strict principles as to when we do and when we don’t. “

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