Payments network giant Mastercard is planning to make its own network to facilitate transfers with a central bank digital currency (CBDC). According to the earnings call transcription, Mastercard believes that only government-issued technology can be used for payments.
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Mastercard CEO, Michael Miebach, noted the corporation will make its own network for a CBDC when the US government "is ready to put out a central bank digital currency identical exist alongside the dollar or the euro in settlement currency in our network."
"How will the government test that? How will a country figure out between the private sector banks and the governments how to do this? That is where our sandbox comes in, so we can provide a safe space for government and private sector banks to figure out how that would actually work," Miebach said.
The statement comes after the corporation announced it is working on a new service that would allow thousands of financial institutions on its payments network to integrate cryptocurrency-related products. To achieve this goal, the payment giant entered into a partnership with Bakkt, the crypto futures trading exchange backed by ICE.
As iHodl earlier reported, Mastercard acquired CipherTrace, the blockchain forensic company. The New York-based giant said that the joint crypto-focused solution provides businesses with "greater transparency to help identify and understand their risks and to help manage their digital asset regulatory and compliance obligations."
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