MasterCard Began To Explore The Possibilities Of Smart Contracts To Interact With CBDC
CryptoBit News Today1 min read
On April 29, 2021, Mastercard CEO Michael Miebach announced during an earnings call that the company is investigating how smart contracts can work alongside central bank digital currencies.
Mastercard Begins Exploring Smart Contracts for CBDCs
However, the potential applications of smart contracts with CBDCs are intriguing, including the possibility of creating sophisticated financial tools like "smart trade contracts" on top of a CBDC network, according to the CEO.
Exploring further use cases for this digital cash, Miebach cited the CBDC project in the Bahamas, which has implemented a Mastercard card linked to the Bahamas' digital currency, the Sand Dollar. Many central banks are pursuing a two-tier approach to CBDCs, with the central bank minting the digital currency and commercial banks handling distribution.
Privacy, Security and Accessibility of CBDCs
Unlike digital currencies such as Bitcoin, CBDCs are centralized.
During the company's Q1 earnings call, Miebach told investors that Mastercard wants to participate in CBDCs and private stablecoins, as well as facilitate the buying and selling of crypto assets.
Mastercard and CBDC
Miebach explained that engaging governments through testing platforms also serves to involve commercial banks, which must work in conjunction within a two-tier system.
