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{{Short description|Banking platform}}
'''mBridge''' is a platform developed by a group of central banks, including the Hong Kong Monetary Authority (HKMA), the Bank of Thailand (BoT), the Central Bank of the United Arab Emirates (CBUAE), the Digital Currency Institute of the People's Bank of China (PBC DCI), and the BIS Innovation Hub Hong Kong Centre (BISIH Hong Kong Centre). The platform is designed to support real-time, peer-to-peer, cross-border payments and foreign exchange transactions using CBDCs, and it is based on a new blockchain called the mBridge Ledger. The platform is designed to ensure compliance with jurisdiction-specific policy and legal requirements, regulations, and governance needs. A pilot involving real corporate transactions was conducted on the platform among participating central banks, selected commercial banks, and their customers in four jurisdictions. The project has focused on developing hypothetical use cases in the Greater Bay Area (GBA) as a way to demonstrate the technology and operational improvements that mBridge can offer. The next phases of the project are expected to include additional use cases and participants, and further work on the legal and governance framework.

'''mBridge''' ({{aka}} '''Multiple CBDC Bridge''') is a multiple ] platform developed to support real-time, peer-to-peer, cross-border payments and foreign exchange transactions using ]. Based on a ] called the ''mBridge Ledger'', the platform is designed to ensure compliance with jurisdiction-specific policy and legal requirements, regulations, and governance needs.<ref name="projectM-261022" />

Currently five entities are jointly developing mBridge. They include the ] (HKMA), the ] (BoT), the ] (CBUAE), the ] of the ] (PBC DCI), and the ] Hong Kong Centre (BISIH Hong Kong Centre).<ref name="projectM-261022">{{Cite web |date=2022-10-26 |title=Project mBridge: Connecting economies through CBDC |url=https://www.bis.org/about/bisih/topics/cbdc/mcbdc_bridge.htm |website=Bank for International Settlements |language=en |access-date=2022-12-12 |archive-date=2021-10-05 |archive-url=https://archive.today/20211005232852/https://www.bis.org/about/bisih/topics/cbdc/mcbdc_bridge.htm |url-status=live }}</ref> The ] joined in June 2024.<ref name=reuters-20240605>{{cite news |url=https://www.reuters.com/technology/saudi-arabia-joins-bis-led-central-bank-digital-currency-trial-2024-06-05/ |title=Saudi Arabia joins BIS- and China-led central bank digital currency project |last=Jones |first=Marc |publisher=Reuters |url-access=limited |date=5 June 2024 |access-date=29 October 2024}}</ref>

== Development ==
A pilot involving real corporate transactions was conducted on the platform among participating central banks, selected commercial banks, and their customers in four jurisdictions. The project focused on developing hypothetical use cases in the ] (GBA) as a way to demonstrate the technology and operational improvements that mBridge can offer.<ref>{{Cite web |title=Cross-boundary Payment and Settlement Systems in the Greater Bay Area |url=https://www.aof.org.hk/docs/default-source/hkimr/applied-research-report/gbarep.pdf}}</ref>

In September 2021, the ] (BIS), in collaboration with ], ], ], and the ], published a report regarding the second phase of the mBridge project, aiming to establish a system involving multiple CBDCs to enable faster, more cost-effective, and efficient methods for conducting cross-border transfers and foreign exchange operations.<ref>{{Cite web |title=Crossborder CBDC projects |url=https://www.atlanticcouncil.org/cbdctracker/ |access-date=2023-10-12 |archive-date=2022-06-04 |archive-url=https://web.archive.org/web/20220604222154/https://www.atlanticcouncil.org/cbdctracker/ |url-status=live }}</ref>

The HKMA expressed the intent to collaboratively launch a minimum viable product in 2024, with the effort built on the ]'s focus on exploring new technologies to provide more cost-effective and secure real-time cross-border payments and settlements.<ref name="BLB090823">{{Cite news |date=2023-08-09 |title=China Sprints Ahead in Race to Modernize Global Money Flows |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2023-08-09/china-s-digital-yuan-mbridge-plan-challenges-7-trillion-dollar-dominance |access-date=2023-10-11 |archive-date=2023-08-09 |archive-url=https://web.archive.org/web/20230809150219/https://www.bloomberg.com/news/articles/2023-08-09/china-s-digital-yuan-mbridge-plan-challenges-7-trillion-dollar-dominance |url-status=live }}</ref>

In October 2024, BIS was reported to be considering shutting down the pilot mBridge platform, as the ] had discussed the creation of a BRICS Bridge, based on the mBridge technology. Such a system would allow ] countries to become partly independent of the US-supervised financial system and restrictions to ], which is subject to US pressure, and thus partly evade the US financial sanctions system.<ref name=swissinfo-20241029>{{cite news |url=https://www.swissinfo.ch/eng/bis-debates-ending-project-eyed-by-putin-to-undermine-dollar/87865410 |title=BIS Debates Ending Project Eyed by Putin to Undermine Dollar |agency=Reuters |website=swissinfo.ch |date=29 October 2024 |access-date=29 October 2024}}</ref><ref name=rusi-20240909>{{cite web |url=https://www.chathamhouse.org/publications/the-world-today/2024-09/brics-economies-unite-target-dollar |title=BRICS+ economies unite to target the dollar |last=Lubin |first=David |website=Chatham House |publisher=Royal United Services Institute |date=9 September 2024 |access-date=29 October 2024}}</ref><ref name=rs-20240602>{{cite web |url=https://responsiblestatecraft.org/dedollarization-china-russia/ |title=BRICS and de-dollarization, how far can it go? |last=Corbin |first=Michael |website=Responsible Statecraft |date=2 June 2024 |access-date=29 October 2024 |archive-date=8 November 2024 |archive-url=https://web.archive.org/web/20241108220111/https://responsiblestatecraft.org/dedollarization-china-russia/ |url-status=live }}</ref>

== Related projects ==
Alongside mBridge, there are also other ongoing projects aiming to improve cross-border transactions with CBDCs.<ref name="BLB090823" />

=== Project Aurum ===
A full-stack (front-end and back-end) CBDC system comprising a wholesale interbank system and a retail e-wallet system, bringing to life intermediated CBDC and stablecoins backed by CBDC in the interbank system.<ref>{{Cite web |date=2021-03-18 |title=Aurum: a two-tier retail CBDC system |url=https://www.bis.org/about/bisih/topics/cbdc/rcbdc.htm |website=Bank for International Settlements |language=en |access-date=2024-05-24 |archive-date=2024-05-24 |archive-url=https://web.archive.org/web/20240524082234/https://www.bis.org/about/bisih/topics/cbdc/rcbdc.htm |url-status=live }}</ref>

Collaborators: BIS, ], ]

=== Dunbar ===
On 22 March 2022, the ], the ], ], the ], and the ] announced the completion of prototypes for a shared Dunbar platform, enabling international settlements using multiple CBDCs.<ref>{{Cite web |title=BIS Innovation Hub and central banks of Australia, Malaysia, Singapore and South Africa develop experimental multi-CBDC platform for international settlements |url=https://www.bnm.gov.my/-/project-dunbar-update1 |access-date=2023-10-11 |website=www.bnm.gov.my |archive-date=2023-10-17 |archive-url=https://web.archive.org/web/20231017124404/https://www.bnm.gov.my/-/project-dunbar-update1 |url-status=live }}</ref>

=== Cedar x Ubin+ ===
The Cedar x Ubin+ project, the flagship venture of the New York Innovation Center (NYIC) in collaboration with the Monetary Authority of Singapore, is a multi-phase technical research initiative that evaluates the potential applications of wholesale CBDCs, built with distributed ledger technology to enhance the efficiency and transparency of cross-border payments.<ref>{{Cite web |title=Project Cedar: Improving Cross-Border Payments With Distributed Ledger Technology |url=https://www.newyorkfed.org/aboutthefed/nyic/project-cedar |access-date=2023-10-11 |website=www.newyorkfed.org |language=en}}</ref><ref>{{Cite web |title=Project Cedar Phase II x Ubin+ |url=https://www.newyorkfed.org/medialibrary/media/nyic/project-cedar-phase-two-ubin-report.pdf |access-date=2023-10-11 |archive-date=2023-08-23 |archive-url=https://web.archive.org/web/20230823100338/https://www.newyorkfed.org/medialibrary/media/nyic/project-cedar-phase-two-ubin-report.pdf |url-status=live }}</ref>

=== Mariana ===
In October 2023, the Bank for International Settlements, in partnership with the central banks of ], ], and ], confirmed the successful completion of the Mariana project, which explored cross-border trading and settlement of wholesale CBDCs among financial institutions while integrating decentralized finance technology on a public blockchain.<ref>{{Cite web |last=www.ETBFSI.com |title=Cross-border CBDC trading: BIS and central banks successfully conclude Project Mariana test - ET BFSI |url=https://bfsi.economictimes.indiatimes.com/news/financial-services/cross-border-cbdc-trading-bis-and-central-banks-successfully-conclude-project-mariana-test/104118865 |access-date=2023-10-11 |website=ETBFSI.com |language=en |archive-date=2024-02-23 |archive-url=https://web.archive.org/web/20240223155858/https://bfsi.economictimes.indiatimes.com/news/financial-services/cross-border-cbdc-trading-bis-and-central-banks-successfully-conclude-project-mariana-test/104118865 |url-status=live }}</ref>

=== Icebreaker ===
In March 2023, the ], in collaboration with the central banks of ], ], and ], completed the Icebreaker project, which examined the technical feasibility of using retail CBDCs in international payments.<ref>{{Cite web |date=2023-03-06 |title=Project Icebreaker concludes experiment for a new architecture for cross-border retail CBDCs |url=https://www.bis.org/about/bisih/topics/cbdc/icebreaker.htm |website=Bank for International Settlements |language=en |access-date=2023-10-11 |archive-date=2023-10-01 |archive-url=https://web.archive.org/web/20231001220551/https://www.bis.org/about/bisih/topics/cbdc/icebreaker.htm |url-status=live }}</ref>

=== Jura ===
In November 2021, the consortium responsible for Jura project, comprising the Bank for International Settlements, ], ], and various private firms, explored the direct transfer of ] and ] wholesale CBDCs between French and Swiss commercial banks on a single ] platform. The group officially confirmed the experiment's success in a report released on December 8, 2021.<ref>{{Cite web |date=2021-12-08 |title=Project Jura: cross-border settlement using wholesale CBDC |url=https://www.bis.org/about/bisih/topics/cbdc/jura.htm |website=Bank for International Settlements |language=en |access-date=2023-10-11 |archive-date=2023-10-17 |archive-url=https://web.archive.org/web/20231017123654/https://www.bis.org/about/bisih/topics/cbdc/jura.htm |url-status=live }}</ref><ref>{{Cite web |date=2021-12-08 |title=Project Jura executes ‘real-life’ cross-border CBDC settlement - Central Banking |url=https://www.centralbanking.com/fintech/cbdc/7905951/project-jura-executes-real-life-cross-border-cbdc-settlement |access-date=2023-10-11 |website=www.centralbanking.com |language=en |archive-date=2023-10-17 |archive-url=https://web.archive.org/web/20231017124215/https://www.centralbanking.com/fintech/cbdc/7905951/project-jura-executes-real-life-cross-border-cbdc-settlement |url-status=live }}</ref>

==See also==
*]
*]

== References ==
{{Reflist|30em}}

== External links ==
*
*
*
*

{{Central bank digital currency}}
]
]

Latest revision as of 10:48, 22 January 2025

Banking platform

mBridge (a.k.a. Multiple CBDC Bridge) is a multiple central bank digital currency platform developed to support real-time, peer-to-peer, cross-border payments and foreign exchange transactions using CBDCs. Based on a blockchain called the mBridge Ledger, the platform is designed to ensure compliance with jurisdiction-specific policy and legal requirements, regulations, and governance needs.

Currently five entities are jointly developing mBridge. They include the Hong Kong Monetary Authority (HKMA), the Bank of Thailand (BoT), the Central Bank of the United Arab Emirates (CBUAE), the Digital Currency Research Institute of the People's Bank of China (PBC DCI), and the BIS Innovation Hub Hong Kong Centre (BISIH Hong Kong Centre). The Saudi Central Bank joined in June 2024.

Development

A pilot involving real corporate transactions was conducted on the platform among participating central banks, selected commercial banks, and their customers in four jurisdictions. The project focused on developing hypothetical use cases in the Greater Bay Area (GBA) as a way to demonstrate the technology and operational improvements that mBridge can offer.

In September 2021, the Bank for International Settlements (BIS), in collaboration with Thailand, Hong Kong, China, and the UAE, published a report regarding the second phase of the mBridge project, aiming to establish a system involving multiple CBDCs to enable faster, more cost-effective, and efficient methods for conducting cross-border transfers and foreign exchange operations.

The HKMA expressed the intent to collaboratively launch a minimum viable product in 2024, with the effort built on the G20's focus on exploring new technologies to provide more cost-effective and secure real-time cross-border payments and settlements.

In October 2024, BIS was reported to be considering shutting down the pilot mBridge platform, as the 16th BRICS summit had discussed the creation of a BRICS Bridge, based on the mBridge technology. Such a system would allow BRICS countries to become partly independent of the US-supervised financial system and restrictions to SWIFT, which is subject to US pressure, and thus partly evade the US financial sanctions system.

Related projects

Alongside mBridge, there are also other ongoing projects aiming to improve cross-border transactions with CBDCs.

Project Aurum

A full-stack (front-end and back-end) CBDC system comprising a wholesale interbank system and a retail e-wallet system, bringing to life intermediated CBDC and stablecoins backed by CBDC in the interbank system.

Collaborators: BIS, Hong Kong Monetary Authority, Hong Kong Applied Science and Technology Research Institute

Dunbar

On 22 March 2022, the BIS Innovation Hub, the Reserve Bank of Australia, Bank Negara Malaysia, the Monetary Authority of Singapore, and the South African Reserve Bank announced the completion of prototypes for a shared Dunbar platform, enabling international settlements using multiple CBDCs.

Cedar x Ubin+

The Cedar x Ubin+ project, the flagship venture of the New York Innovation Center (NYIC) in collaboration with the Monetary Authority of Singapore, is a multi-phase technical research initiative that evaluates the potential applications of wholesale CBDCs, built with distributed ledger technology to enhance the efficiency and transparency of cross-border payments.

Mariana

In October 2023, the Bank for International Settlements, in partnership with the central banks of France, Singapore, and Switzerland, confirmed the successful completion of the Mariana project, which explored cross-border trading and settlement of wholesale CBDCs among financial institutions while integrating decentralized finance technology on a public blockchain.

Icebreaker

In March 2023, the Bank for International Settlements, in collaboration with the central banks of Israel, Norway, and Sweden, completed the Icebreaker project, which examined the technical feasibility of using retail CBDCs in international payments.

Jura

In November 2021, the consortium responsible for Jura project, comprising the Bank for International Settlements, Banque de France, Swiss National Bank, and various private firms, explored the direct transfer of Euro and Swiss franc wholesale CBDCs between French and Swiss commercial banks on a single distributed ledger platform. The group officially confirmed the experiment's success in a report released on December 8, 2021.

See also

References

  1. ^ "Project mBridge: Connecting economies through CBDC". Bank for International Settlements. 2022-10-26. Archived from the original on 2021-10-05. Retrieved 2022-12-12.
  2. Jones, Marc (5 June 2024). "Saudi Arabia joins BIS- and China-led central bank digital currency project". Reuters. Retrieved 29 October 2024.
  3. "Cross-boundary Payment and Settlement Systems in the Greater Bay Area" (PDF).
  4. "Crossborder CBDC projects". Archived from the original on 2022-06-04. Retrieved 2023-10-12.
  5. ^ "China Sprints Ahead in Race to Modernize Global Money Flows". Bloomberg.com. 2023-08-09. Archived from the original on 2023-08-09. Retrieved 2023-10-11.
  6. "BIS Debates Ending Project Eyed by Putin to Undermine Dollar". swissinfo.ch. Reuters. 29 October 2024. Retrieved 29 October 2024.
  7. Lubin, David (9 September 2024). "BRICS+ economies unite to target the dollar". Chatham House. Royal United Services Institute. Retrieved 29 October 2024.
  8. Corbin, Michael (2 June 2024). "BRICS and de-dollarization, how far can it go?". Responsible Statecraft. Archived from the original on 8 November 2024. Retrieved 29 October 2024.
  9. "Aurum: a two-tier retail CBDC system". Bank for International Settlements. 2021-03-18. Archived from the original on 2024-05-24. Retrieved 2024-05-24.
  10. "BIS Innovation Hub and central banks of Australia, Malaysia, Singapore and South Africa develop experimental multi-CBDC platform for international settlements". www.bnm.gov.my. Archived from the original on 2023-10-17. Retrieved 2023-10-11.
  11. "Project Cedar: Improving Cross-Border Payments With Distributed Ledger Technology". www.newyorkfed.org. Retrieved 2023-10-11.
  12. "Project Cedar Phase II x Ubin+" (PDF). Archived (PDF) from the original on 2023-08-23. Retrieved 2023-10-11.
  13. www.ETBFSI.com. "Cross-border CBDC trading: BIS and central banks successfully conclude Project Mariana test - ET BFSI". ETBFSI.com. Archived from the original on 2024-02-23. Retrieved 2023-10-11.
  14. "Project Icebreaker concludes experiment for a new architecture for cross-border retail CBDCs". Bank for International Settlements. 2023-03-06. Archived from the original on 2023-10-01. Retrieved 2023-10-11.
  15. "Project Jura: cross-border settlement using wholesale CBDC". Bank for International Settlements. 2021-12-08. Archived from the original on 2023-10-17. Retrieved 2023-10-11.
  16. "Project Jura executes 'real-life' cross-border CBDC settlement - Central Banking". www.centralbanking.com. 2021-12-08. Archived from the original on 2023-10-17. Retrieved 2023-10-11.

External links

Central bank digital currency (CBDC)
Africa
Asia
Europe
South America
Atlantic Ocean
International
Spans the conventional boundary between Asia and Europe.
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