Challenges and Opportunities in Adopting Central Bank Digital Currencies
Mastercard's blockchain and digital assets lead for Asia-Pacific, Ashok Venkateswaran, stated that the widespread adoption of central bank digital currencies (CBDCs) is currently difficult due to the lack of justification and consumer comfort with existing forms of money. While CBDCs are seen as a safe and low-cost alternative to cash, building the necessary infrastructure takes time and effort. Venkateswaran highlighted the importance of understanding the specific needs and problems of each country before implementing a CBDC, as it may not be necessary for countries with efficient payment systems. Mastercard recently completed testing of its retail CBDC solution in Hong Kong's e-HKD pilot program, while Singapore announced plans to pilot wholesale CBDCs from 2024.