Recently, the multiple-central bank digital currency bridge (mBridge), a project jointly established by the BIS Innovation Hub (Hong Kong Centre), the Bank of Thailand, the Central Bank of the UAE, the Digital Currency Institute of the People’s Bank of China, and the Hong Kong Monetary Authority, announced its entry into the Minimum Viable Product (MVP) phase. Within these jurisdictions, participating institutions can conduct real transactions in an orderly manner according to the relevant procedures. As one of the nine domestic institutions participating in the mBridge, CIB can now regularly utilize mBridge to innovate in cross-border business.
The mBridge project aims to create a high-efficiency, low-cost, highly scalable, and regulatory-compliant cross-border payment solution centered on central bank digital currencies (CBDCs). By covering different jurisdictions and currencies, it explores the application of distributed ledger technology and CBDCs in cross-border payments, achieving faster, cheaper, and more secure cross-border payment and settlement.
In July 2023, with the approval of the Digital Currency Institute of the People's Bank of China, CIB became one of the nine domestic participants in mBridge. Utilizing its experience in developing E-CNY, CIB has contributed to the upgrade of mBridge and successfully conducted multiple real cross-border transactions based on mBridge this year. During this period, CIB successfully carried out various cross-border fund transactions in Chengdu, Suzhou, and Dalian, including interbank fund transfers and transactions in goods and services trade scenarios, demonstrating its capability to provide efficient, convenient, and low-cost cross-border payment services through mBridge.
"With mBridge entering the Minimum Viable Product (MVP) phase, our bank will continue to fulfill its primary responsibilities as an E-CNY operating institution. We will collaborate with partner banks and corporate clients to explore and improve cross-border financial service solutions using mBridge, thereby advancing high-level financial openness," said a representative from CIB's E-CNY Department.