Financial Corporation Mastercard has introduced a virtual environment for testing central bank digital currencies (CBDC). This was reported in a press release.
The project is a controlled environment in which banks can simulate the issuance of national digital currencies. The result will be an assessment of their compatibility with the existing payment ecosystem and the practicality of using CBDC.
Mastercard did not specify what software is used in the project. We only know that it uses distributed ledger technology.
Earlier, independent analysts from the dGen institute suggested that within ten years, three to five countries will completely abandon fiat in favor of national digital currencies. The authors of the report do not give exact statements, but point to China and the Bahamas.
According to the Bank for International Settlements, at the beginning of 2019, 70% of central banks were engaged in CBDC research. This interest is due to increased competition and financial inclusion, as well as the expansion of fiscal policy instruments.
The Central Bank of Brazil has begun developing PIX instant payments and integrating remote services as part of an open banking project. The next step should be the release of digital real by the end of 2022.