Recently, Mastercard, in dialogues with the authorities of the Central Bank of China, discussed various financial concerns and also assured the firm’s support for the centralized digital currency of China, Digital Yuan. China is looking forward to launching the national digital currency, and for that, Mastercard is taking an interest to help China to proceed with its plans and concerns as the company assured the financial authorities to support the digital Yuan. MasterCard, which is known to be giant and global innovative payment technology connecting billions of merchants, issuers, consumers, businesses, and governments, has now indicated support and shared the concerns with the People’s Bank of China (PBoC).
Reportedly, Mastercard is negotiating with the Central bank of China for mutual concerns and to support the utilization of Digital Yuan across borders. According to SCMP (South China Morning Post), Mastercard is in continuous talks with the PBoC (People’s Bank of China) and is convincing the financial authorities to empower the conversion of corresponding virtual assets into fiat currencies.
This idea is going to be unique of its kind as it will benefit both parties and facilitate the people across the globe. This collaboration is aimed to use the payment network of MasterCard, including merchant partners in exact 70 million and more than 02 million worldwide ATMs, which would ease the conversion of Central Bank Digital Currencies (CBDC) into offshore currencies.
It is reported that MasterCard claims to play a distinguished role on interoperability at the time of payment crossing the boundary, while on the other hand, central banks can only address the domestic problems associated with the virtual sovereign currencies. Hence, supporting CBDC (Central Bank Digital Currencies) is quite simple for MasterCard, just like adding one more fiat currency onto the platform.
China claims that currently, they are working on pilot tests of Digital Currency Electronic Payment (DGEP) in different cities, including Chengdu, Shenzhen, Xiongan, and Suzhou.
Monetary Authorities of Hong Kong and People’s Bank of China are planning to extend the utilization of digital Yuan in a vast area, including Macau and Hong Kong.
In February 2021, China partnered with Thailand, United Arab Emirates (UAE), and Hong Kong for the Central Bank Digital Currencies (CBDC) projects for the sake of cross-border utilization of sovereign virtual assets, and now working with Mastercard will help China to speed up its efforts.