China to launch mBridge commercially after $55 billion in transactions
A Financial Times article has reported that China will soon launch its commercial version of mBridge, the Central Bank Digital currency (CBDC) platform built on blockchain, being utilized for cross border payments.
According to the Financial Times, a new Hong Kong-based entity will oversee operations. The platform is backed by the central banks of mainland China, Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia.
People familiar with the rollout that preparations are in advanced stages and that fees on the platform are expected to run at roughly 50% less than conventional systems such as SWIFT, although no firm launch date has been disclosed.
The mBridge system began in 2021 as a Bank for International Settlements Innovation Hub project linking the central banks of China, Hong Kong, Thailand and the UAE.
Saudi Arabia joined as a full participant in mid-2024, the same year the BIS reached its minimum viable product milestone before stepping back from direct stewardship and handing the platform to the participating central banks.
Atlantic Council data show mBridge has now cleared more than 4,000 transactions worth roughly $55.5 billion, a 2,500-fold jump from its 2022 pilots, with China’s digital yuan accounting for about 95% of settlement volume.
Recently Macau joined a cross-border central bank digital currency settlement platform MBridge becoming one of those alongside Saudi Arabia, UAE, and China, with 11 banks in the city becoming the first participating institutions with transactions taking place with UAE and China.
