Mastercard to Explore Applications It Can Build on Top of CBDCs
In the company’s latest quarterly earnings call, CEO Michael Miebach noted that the company is investing in smart contract technology to pair with central bank digital currencies.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/VTABB3VVJJDBNCOERSDR3R23GY.jpg)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
Mastercard is aiming to help governments evaluate the utility of central bank digital currencies (CBDCs) outside of just payments, CEO Michael Miebach said on the company’s first-quarter earnings conference call on Thursday.
In the future, Mastercard will explore applications that can exist on top of CBDCs.
“This could be a smart trade contract,” Miebach said. “So smart contract technology is what we’re investing in.”
Several central banks, including the European Central Bank and Bank of England, have taken a “two-tier approach” in which central banks mint the CBDC while the private sector distributes it, Miebach said.
Mastercard has already been engaging with governments on central bank digital currencies. In February, the Bahamas launched an option for citizens to load the country’s CBDC onto a prepaid Mastercard.
The payments network also has “several new crypto partnerships approved for launch this quarter,” Miebach said. This week, Gemini disclosed that Mastercard would be the network behind its crypto rewards credit card coming later this year.
Last September, Mastercard announced it would offer central banks a virtual testing environment to see how CBDCs work in real life.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.