China's mBridge cross-border digital currency platform nears commercial launch

According to ME News, China-led cross-border digital currency platform mBridge is moving toward commercial operations as of June 14 (UTC+8). The initiative involves the People's Bank of China, the Hong Kong Monetary Authority, and the central banks of Thailand, the United Arab Emirates and Saudi Arabia. A dedicated entity is expected to be set up in Hong Kong to manage day-to-day operations. People familiar with the project said preparations are in an advanced stage. Transaction fees are expected to be about half those charged by traditional international payment networks such as SWIFT, a pricing strategy designed to appeal to small and medium-sized enterprises facing high costs for cross-border payments. Built on blockchain technology, mBridge allows participating central banks to transact directly using their respective digital currencies. The platform is intended to cut FX settlement times to seconds and reduce the role of the U.S. dollar as an intermediary currency. Cumulative transaction volume on mBridge has reached about RMB 47 billion (around USD 6.9 billion). Gene Ma, Head of China Research at the Institute of International Finance, said the global payments market is evolving from SWIFT-centered dominance to a multi-network competitive landscape, with mBridge positioned to become a major player. In 2024, mBridge transitioned from the Bank for International Settlements (BIS) to member-led governance. While some external observers linked the shift to U.S. pressure, the BIS has denied the allegation. (Source: Foresight News)