Mastercard has announced a strategic relationship with several blockchain companies, including Ripple. This is a big deal that shows how important central bank digital currencies (CBDCs) are becoming in the global financial system. Despite the positive sentiment, XRP token tumbled by 14.3% in the last 24 hours, along with other assets.
Ripple’s Master Stroke Is Real Now?
Today’s launch of Mastercard’s CBDC affiliate program shows the company’s dedication to forging strong relationships with industry heavyweights. While for Ripple is it surely another milestone. The whole purpose is to educate central banks on CBDCs and their potential to alter the shape of financial systems in the digital era. Mastercard has positioned Ripple, which it refers to as the “CBDC platform” in a press statement , as the frontrunner in this ambitious project.
The early CBDC platform partners will include Ripple, blockchain and Web3 software company Consensys, multi-CBDC and tokenized asset solution provider Fluency, digital identity technology provider Idemia, security technology consultant Consult Hyperion, and digital asset operations platform Fireblocks.
Evidently, Ripple’s partnership with the Republic of Palau has led to the launch of a first-ever govt-launched stablecoin, making its position clear as a major player in the CBDC list. However Mastercard sees this collaboration as a real test of Ripple’s capabilities, in addition, the company may bring four more additions to the CBDC’s pilot project.
A Welcome Move for Banks!
In this context, Michael Miebach, CEO of Mastercard, showed his excitement and said apart from Ripple the company is already working with several central banks to help them leverage this new digital currency project. His aim is to bring transparency, stability, and security to the financial system.
We’re partnering with several central banks to help them research new digital currencies projects. It starts with understanding what they want to achieve with this technology, then building in transparency, consumer privacy and stability. We’re working toward those goals with a… — Michael Miebach (he/him/his) (@MiebachMichael) August 17, 2023
In response, Ripple CBDC Advisor Antony Welfare has also shown his excitement on his X post. While other’s think this move will enable the company to use XRP as a payment system.
Excited to be working with @Mastercard on #DigitalCurrency and #cbdc projects