The China-led cross-border digital currency platform mBridge has processed over $55 billion in transactions, signaling growing momentum in the development of payment systems operating outside traditional dollar-based frameworks.
Project mBridge, a multi-central bank digital currency (CBDC) platform, has now settled more than 4,000 cross-border transactions, accumulating a total value of approximately $55.5 billion. This figure represents a significant increase, nearly 2,500-fold, since the project's initial pilot phase in 2022. The data was compiled by the Atlantic Council, a Washington-based think tank.
Currently, central banks from mainland China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia are testing the platform. The digital yuan, or e-CNY, issued by China, accounts for an estimated 95% of the total settlement volume on mBridge.
China Expands Digital Yuan Infrastructure
mBridge's rapid growth coincides with China's ongoing efforts to scale its domestic CBDC infrastructure. Recent statistics from the People's Bank of China indicate that the e-CNY has processed over 3.4 billion transactions valued at approximately 16.7 trillion yuan ($2.4 trillion). This represents an increase of more than 800% compared to the previous year.
New Framework to Enable Interest Payments on Digital Yuan
China's central bank is implementing a new framework for the digital yuan that will permit commercial banks to offer interest on e-CNY wallet balances. This initiative aims to broaden the digital yuan's utility beyond its current function as a cash-like payment tool.
According to the People's Bank of China, this framework will enable banks to incorporate the digital yuan into their asset and liability management strategies. PBOC Deputy Governor Lu Lei stated that the e-CNY will evolve into a "digital deposit currency," enhancing its capabilities to include value storage and cross-border payments, in addition to everyday transactions.
Alisha Chhangani, an analyst at the Atlantic Council, commented to Reuters that these developments collectively suggest a progressive internationalization of the yuan through digital infrastructure. She further noted that China and its partners are establishing parallel settlement systems to reduce reliance on existing dollar-centric systems, rather than directly challenging the US dollar's dominance.
BIS Steps Back from Project mBridge
In 2024, the Bank for International Settlements (BIS) withdrew from mBridge, a project it had been instrumental in developing through its Innovation Hub since 2021. The BIS described this move as a "graduation" rather than a complete withdrawal.
At the time, BIS General Manager Agustín Carstens addressed speculation that mBridge could be used by BRICS nations to circumvent international sanctions. He clarified that "mBridge is not the BRICS bridge" and emphasized that BIS systems are not accessible to sanctioned countries. This statement came amidst discussions about the project's geopolitical implications, fueled by overlaps between mBridge participants and BRICS members.
Following its involvement with mBridge, the BIS has redirected its focus to Project Agorá, a separate initiative involving several major Western central banks that has recently announced expanded testing phases.