Island Pay announced a strategic partnership with Mastercard that results in a prepaid card linked to the Bahamas central bank’s digital currency. It will be the first of its kind and a sign of serious plans from Mastercard to be more active in the cryptocurrency field.
Central Bank of The Bahamas is the other partner in this collaboration. The world’s first Central Bank Digital Currency-Linked Card will provide additional payment features for Bahamas citizens to use The Bahamas Send Dollar central bank digital currency.
New Opportunities for CBDC Users
Mastercard is on the way to extend its offerings in the cryptocurrency world. The payment giant plans to offer many valuable services for cryptocurrency users to attract them more. CBDCs are on the way to become the new payment solutions for citizens around the world. Supporting these kinds of digital currencies helps companies like Mastercard and Island Pay be at the frontline of this evolution.
The Bahamas government has issued a CBDC to provide the opportunity for more manageable payments to its citizens. The new partnership between the central bank. Mastercard and Island Pay result in a prepaid card that makes it easier for citizens to use the Send Dollar CBDC. Now the Bahamas citizens can use their CBDC everywhere in the world that Mastercard is accepted.
The latest partnership with Island Pay is another strategic move from Mastercard to extend its offerings in the crypto world. Raj Dhamodharan, executive vice president of Digital Asset & Blockchain Products & Partnerships at Mastercard, said:
“This partnership is an example of how the private and public sector can rethink what’s possible while delivering the strongest levels of consumer protection and regulatory compliance. We’re creating a lot more possibilities for governments, shoppers, and merchants, allowing them to transact in an entirely new form of payment.”
The CBDC of Bahamas, named Sand Dollar, is pegged 1:1 to the Bahamian dollar. It has the same value and consumer protections. These kinds of digital currencies in a region like the Bahamas that consists of more than 700 small islands can be convenient. They reduce the cost of paper money transfers and make it easier for everyone to enter the financial sector. The government can provide services and receive payments easier, too.
The latest product from Island Pay and Mastercard surely will help the Bahamas government attract more citizens to the new service. Central Bank of The Bahamas Governor, John Rolle, added:
“We welcome this approach to combining digital currency use with access to foreign currency and other payment outlets. The Central Bank of The Bahamas will continue to encourage fintech developments that tie into the Sand Dollar infrastructure while allowing us to satisfy best global practices for the regulation of the space.”
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