Synopsis: China-led mBridge CBDC platform processes over $55 billion in cross-border payments, with 4,000+ transactions settled, marking 2,500-fold growth since 2022 pilot phase.
China’s ambitious digital currency platform is gaining serious traction in global finance. Project mBridge has now processed over $55 billion in cross-border transactions. The multi-central bank digital currency platform represents a dramatic shift in international payment systems.
The Washington-based Atlantic Council compiled the latest figures. The data reveals that mBridge has settled more than 4,000 cross-border transactions. This achievement marks a stunning 2,500-fold increase since the project’s early pilot phase in 2022.
Central banks from mainland China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia currently test the platform. However, China’s digital yuan dominates the activity. The e-CNY accounts for roughly 95% of total settlement volume on mBridge.
Explosive Growth Domestically
China continues to expand its domestic CBDC infrastructure at breakneck speed. Recent figures from the People’s Bank of China paint an impressive picture. The e-CNY has processed more than 3.4 billion transactions domestically.
These transactions carry immense value. The total reaches around 16.7 trillion yuan, equivalent to $2.4 trillion. Moreover, this represents an increase of over 800% compared with 2023.
Source: Atlantic Council
China’s central bank is now introducing a new framework for the digital yuan. Commercial banks will soon pay interest on e-CNY wallet balances. The move aims to push the digital yuan beyond its initial role as a cash-like payment tool.
The People’s Bank of China announced that banks will integrate the digital yuan into their asset management. PBOC Deputy Governor Lu Lei explained the transition clearly. The e-CNY will become a “digital deposit currency”. Furthermore, its role will expand to include value storage and cross-border payments alongside everyday transactions.
Atlantic Council analyst Alisha Chhangani offered her perspective on these developments to Reuters. She noted that these changes point to a gradual expansion of the yuan’s internationalization through digital infrastructure. Additionally, China and its partners are building parallel settlement rails. These systems reduce dependence on existing dollar-centric networks.
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Bank for International Settlements Steps Back From Project
In 2024, the Bank for International Settlements made a significant decision. The BIS stepped back from mBridge, the project it helped develop through its Innovation Hub since 2021. The organization described the move as a “graduation” rather than a withdrawal.
BIS General Manager Agustín Carstens addressed speculation surrounding the decision. He sought to distance the BIS from claims that mBridge could help BRICS nations bypass international sanctions. Carstens stated firmly that “mBridge is not the BRICS bridge”.
He emphasized that BIS systems cannot be used by sanctioned countries. Nevertheless, overlap between mBridge participants and BRICS members fueled debate over the project’s geopolitical implications.
Western-Led Alternative Platform
Since withdrawing from mBridge, the BIS has shifted its strategic focus. The organization now concentrates on Project Agorá. This separate effort involves several major Western central banks.
Project Agorá recently announced expanded testing plans. The initiative brings together financial institutions from established economies. This development highlights a growing divide in global CBDC development approaches.
The emergence of two distinct platforms signals an important trend. mBridge represents an Eastern-led alternative to traditional payment systems. On the other hand, Agorá focuses on established financial centers in Western economies.
Experts believe these parallel systems will reshape cross-border finance. The platforms offer different approaches to solving payment inefficiencies. They also reflect broader geopolitical tensions in the global financial system.
China’s Patient Approach to Dollar Alternatives
China’s strategy appears deliberate and patient. Rather than directly challenging the US dollar’s dominance, the country builds alternative infrastructure. These parallel settlement rails gradually reduce dependence on dollar-based systems.
The rapid growth of mBridge demonstrates real momentum behind this approach. Transaction volumes have surged dramatically in just a few years. Central banks in key trading regions actively participate in testing.
The platform’s success could accelerate changes in international finance. Countries seeking greater financial autonomy now have viable alternatives. The impact may be felt most strongly in specific sectors and trade corridors.
Written By Fazal Ul Vahab C H
