MasterCard has begun exploring the possibility of using smart contracts as a tool for central bank digital currencies (CBDCs). The head of MasterCard, Michael MIEBACH, spoke about this during a telephone conversation with investors.
According to the MasterCard team, smart contracts will automate many payment processes and can be used in the CBDC market. Mastercard is already engaging with governments on central bank digital currencies. In February, the Bahamas provided citizens with the option to load the Sand Dollar country's CBDCs onto a Mastercard debit card.
Also, Michael Miebach said that Mastercard has entered into a number of partnerships that will help the company to promote initiatives related to the development of the national digital currencies market. Last September, Mastercard launched a platform that served as a virtual CBDC testing environment for central banks.