Mastercard platform to help governments evaluate central bank digital currencies

Mastercard has announced a proprietary virtual testing environment for central banks to evaluate use cases for central bank digital currencies (CBDCs). CBDCs are designed to be equivalent in value to a nation’s paper currency and subject to the same government-backed guarantees. In addition to printing money, central banks can issue CBDCs as a digital representation of a country’s fiat currency.

According to the company, central banks have been investigating how they can support innovation while maintaining monetary policy and financial stability. Eighty percent of central banks surveyed are engaging in some form of CBDC work, Mastercard said, and about 40% of central banks have progressed from conceptual research to experimenting with concept and design, quoting a recent survey by the Bank for International Settlements.

While a variety of potential operating models exist, the primary approach sees central banks issuing and distributing currency, including digital currencies, through commercial banks and other licensed payments providers. Mastercard understands every central bank differs in its exploration of CBDCs, and its new platform stands ready to explore whether CBDCs fit with the needs of a region or country.

The Mastercard platform enables the simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers. Central banks, commercial banks, and tech and advisory firms are invited to partner with Mastercard to assess CBDC tech designs, validate use cases and evaluate interoperability with existing payment rails available for consumers and businesses today.

“Central banks have accelerated their exploration of digital currencies with a variety of objectives, from fostering financial inclusion to modernising the payments ecosystem," said Raj Dhamodharan, Executive VP, Digital Asset and Blockchain Products and Partnerships, Mastercard.

“Mastercard is driving innovation with the public sector, banks, fintechs, and advisory firms in the exploration of CBDCs, working with partners that are aligned to our core values and principles. This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies.”

Sheila Warren, Head of Blockchain, Digital Assets and Data Policy at the World Economic Forum, said: “Collaborations between the public and private sectors in the exploration of central bank digital currencies can help central banks better understand the range of technology possibilities and capabilities available with respect to CBDCs. Central banks can benefit from support in exploring the option set available to them with respect to CBDCs, as well as gaining insight into what opportunities may be forthcoming.”

The virtual platform can be individually customised to the environment in which the central bank operates, allowing them to:

- Simulate a CBDC issuance, distribution and exchange ecosystem with banks and consumers, including how a CBDC can interface with existing payment networks and infrastructures – e.g., cards and real time payments.

- Demonstrate how a CBDC can be used by a consumer to pay for goods and services anywhere Mastercard is accepted around the world.

- Examine various CBDC technology designs and use cases to more quickly determine value and feasibility in a market.

- Evaluate CBDC development efforts including the technical build, security and early testing of the design and operations.


Mastercard is a global technology company in the payments industry. Its mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible.