Mastercard Says Blockchain and Traditional Finance Should Be Integrated
Jorn Lambert, Chief Digital Officer at Mastercard, believes that the combination of blockchain and traditional finance is essential in order to facilitate the widespread adoption of distributed ledger technology, eliminating the lack of trust in the sector.
He has mentioned:
“In order to scale, you need to migrate your existing central bank-backed regulated money to the blockchain. It hasn’t been done yet.”
According to Lambert, tokenized deposits are a secure way to transfer commercial bank assets into digital format.
Additionally, he has noted that there are difficulties in combining the blockchain with the current digital systems, which is due to their lack of a secured working environment.
He has suggested that the blockchain could simplify cross-border payments, trade, and insurance transactions by tokenizing assets and programming transactions.
Lambert has also mentioned that CBDCs do not sufficiently address the lack of trust, as they have scalability issues.
Mastercard announced the pilot testing of tokenized deposits in October 2022, and since then have been focusing on becoming an intermediary for traditional financial institutions in the cryptocurrency trading sector.
