China-led CBDC project mBridge tops $55B in cross-border payments

Cointelegraph

China-led cross-border digital currency platform mBridge has processed more than $55 billion in transactions as efforts to build payment rails that operate outside traditional dollar-based systems find momentum.

Project mBridge, a multi-central bank digital currency (CBDC) platform, has now settled over 4,000 cross-border transactions with a cumulative value of roughly $55.5 billion, according to data compiled by the Washington-based Atlantic Council. That figure marks a nearly 2,500-fold increase since the project’s early pilot phase in 2022.

The platform is currently being tested by central banks in mainland China, Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia. China’s digital yuan, or e-CNY, accounts for an estimated 95% of total settlement volume on mBridge.

mBridge’s rapid expansion comes as China continues to scale its domestic CBDC infrastructure. Recent figures from the People’s Bank of China show the e-CNY has processed more than 3.4 billion transactions worth around 16.7 trillion yuan ($2.4 trillion), representing an increase of over 800% compared with 2023.

Related: UK rolls back digital ID for work checks as privacy fears drive backlash

China to allow banks to pay interest on digital yuan

As Cointelegraph reported, China’s central bank is introducing a new framework for the digital yuan that will allow commercial banks to pay interest on e-CNY wallet balances. The move is aimed at pushing the digital yuan beyond its initial role as a cash-like payment tool.

According to People’s Bank of China, the framework will enable banks to integrate the digital yuan into their asset and liability management. PBOC Deputy Governor Lu Lei said the e-CNY will transition into a “digital deposit currency,” expanding its role to include value storage and cross-border payments alongside everyday transactions.

“Taken together, these developments point to a gradual expansion of the yuan’s internationalization through digital infrastructure,” Atlantic Council analyst Alisha Chhangani told Reuters. Rather than directly challenging the US dollar’s dominance, she added, China and its partners are building parallel settlement rails that reduce dependence on existing dollar-centric systems.

Related: Seventy economists urge EU to ‘let the public interest prevail’ on digital euro

BIS exits project mBridge amid sanctions evasion concerns

In 2024, the Bank for International Settlements stepped back from mBridge, the project it helped develop through its Innovation Hub since 2021, describing the move as a “graduation” rather than a withdrawal.

At the time, BIS General Manager Agustín Carstens sought to distance the BIS from speculation that mBridge could be used by BRICS nations to bypass international sanctions, claiming that “mBridge is not the BRICS bridge.” He said that BIS systems cannot be used by sanctioned countries, even as overlap between mBridge participants and BRICS members fueled debate over the project’s geopolitical implications.

Since then, the BIS has shifted its focus to Project Agorá, a separate effort involving several major Western central banks that recently announced expanded testing.

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China-led CBDC project mBridge tops $55B in cross-border payments

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