The mBridge platform—a collaborative initiative spearheaded by China for cross-border payments using central bank digital currencies (CBDCs)—has exceeded $55 billion in total transaction value. This milestone, highlighted in a recent analysis, underscores the evolution of digital payment systems amid efforts to streamline international trade and reduce dependency on traditional financial networks.
Launched as a prototype in 2022, mBridge facilitates seamless transfers between participating nations by leveraging blockchain technology and smart contracts.
As reported by Reuters, the project involves central banks from China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia, allowing them to test real-world applications of wholesale CBDCs.
These digital assets represent tokenized versions of national currencies, enabling faster, cheaper, and more transparent settlements compared to conventional methods like wire transfers.
The platform’s growth has been explosive. From humble beginnings, it has processed over 4,000 transactions, with the cumulative value skyrocketing by approximately 2,500 times.
A substantial portion—around 95%—of this activity stems from China’s digital yuan, known as e-CNY.
This CBDC, the most advanced of its kind globally, has itself seen remarkable adoption.
By late last year, it handled more than 3.4 billion transactions totaling 16.7 trillion yuan, equivalent to about $2.4 trillion, marking an 800% increase from the previous year.
To further encourage usage, Chinese authorities are set to introduce interest payments on e-CNY balances held in digital wallets or bank accounts this year, a move aimed at integrating it more deeply into everyday and cross-border commerce.
Industry professionals view mBridge as a strategic tool in Beijing’s push to internationalize the yuan.
By creating alternative digital pathways for settlements, it challenges the dominance of established systems like SWIFT, which is heavily reliant on the U.S. dollar.
Alisha Chhangani, a researcher at the Atlantic Council, described this as a “gradual expansion of the yuan’s role through digital means,” noting that while it won’t immediately upend dollar hegemony, it could slowly chip away at it over time.
The focus appears to be on high-volume sectors such as energy and commodities, where China plays a pivotal role as a major importer.
This progress comes as the Bank for International Settlements (BIS), which initially oversaw mBridge, stepped back in late 2024 to pursue a parallel initiative with Western institutions, including the Federal Reserve Bank of New York and the European Central Bank.
That project involves testing with over 40 commercial banks, but mBridge remains more advanced in its operational scope.
A notable achievement was the UAE‘s inaugural government-level transaction using its digital dirham on the platform in November, signaling practical viability beyond pilots.
Despite these advancements, the People’s Bank of China has refrained from official commentary on the figures, maintaining a cautious approach amid geopolitical sensitivities.
Critics worry about potential risks, including data privacy and the concentration of financial power, but proponents argue that mBridge could foster inclusivity in global trade, particularly for emerging economies.
The platform’s trajectory suggests a shifting landscape in international finance. As more countries explore CBDCs—over 130 are currently in various stages of development—initiatives like mBridge could pave the way for a better monetary system.
