According to Blockworks: The mBridge project, a central bank digital currency (CBDC) initiative that is jointly developed by China, Thailand, Hong Kong, and the United Arab Emirates in partnership with the Bank of International Settlements, is gradually inching towards commercialisation, according to Hong Kong's central bank CEO Eddie Yue.
The mBridge project is a cooperative endeavour among central banks to create a blockchain-driven digital platform for cross-border payments. This platform is seen by some as a potential rival to traditional dollar-based global payment systems.
At the 2023 Bund Summit, in a keynote speech, Eddie Yue detailed the plans for the platform. He also hinted at the possibility of more central banks joining the platform, which would expand the initiative's scope. "We are expecting to welcome more fellow central banks to join this open platform," said Yue. He also mentioned the imminent launch of a "minimum viable product" with the aim of facilitating the eventual commercialisation of mBridge.
Recent pilot trials of this wholesale CBDC platform have reportedly shown that it can speed up cross-border payments while reducing costs and improving transparency. According to earlier reports by Bloomberg, under the mBridge platform, the digital version of China's yuan could be used to facilitate larger corporate transactions, potentially serving as an alternative to the dollar.
China has been at the forefront of CBDC experimentation among developed nations. However, the actual implementation status of paying civil servants and government employees in Changshu with the country's CBDC, which was supposed to start in June, remains unclear.
Approximately twelve projects, including China's CBDC, have moved into the pilot phase, according to reports on CBDCTracker.org. These include initiatives in Russia, France, India, Singapore. By contrast, although US politicians have discussed the idea several times, there are no concrete details about the actual creation or trial of such a currency.
In Yue's speech, he underscored that the mBridge project could play a crucial role in overcoming long-time issues in cross-border payments and enhance the efficiency of the global value chain. Additionally, he noted the potential for China to exert more influence over regional supply chains due to its steady exports and increased market share in regional economies.