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mBridge is a multi-CBDC platform developed to support real-time, peer-to-peer, cross-border payments and foreign exchange transactions using CBDCs. 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.

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).

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.

The next phases of the project are expected to include additional use cases and participants, and further work on the legal and governance framework. The HKMA expressed the intent to collaboratively launch a minimum viable product in 2024, with the effort built on the G-20's focus on exploring new technologies to provide more cost-effective and secure real-time cross-border payments and settlements.

Related projects

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

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.

References

1. ^ "Project mBridge: Connecting economies through CBDC". 2022-10-26. {{cite journal}}: Cite journal requires |journal= (help)
2. "Cross-boundary Payment and Settlement Systems in the Greater Bay Area" (PDF).
3. ^ "China Sprints Ahead in Race to Modernize Global Money Flows". Bloomberg.com. 2023-08-09. Retrieved 2023-10-11.
4. "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. Retrieved 2023-10-11.
5. "Project Cedar: Improving Cross-Border Payments With Distributed Ledger Technology". www.newyorkfed.org. Retrieved 2023-10-11.
6. "Project Cedar Phase II x Ubin+" (PDF).
7. www.ETBFSI.com. "Cross-border CBDC trading: BIS and central banks successfully conclude Project Mariana test - ET BFSI". ETBFSI.com. Retrieved 2023-10-11.
8. "Project Icebreaker concludes experiment for a new architecture for cross-border retail CBDCs". 2023-03-06. {{cite journal}}: Cite journal requires |journal= (help)
9. "Project Jura: cross-border settlement using wholesale CBDC". 2021-12-08. {{cite journal}}: Cite journal requires |journal= (help)
10. "Project Jura executes 'real-life' cross-border CBDC settlement - Central Banking". www.centralbanking.com. 2021-12-08. Retrieved 2023-10-11.

• Central bank digital currencies
• Monetary reform