Project mBridge, an innovative initiative led by the Bank for International Settlements (BIS), aims to develop a multi-central bank digital currency (multi-CBDC) with the help of private sector participation to transform its prototype into a viable product.
Launched in 2021 by the BIS Innovation Hub in partnership with the central banks of Thailand and the United Arab Emirates, along with authorities from China and Hong Kong, Project mBridge has since welcomed the Saudi Arabian central bank and 26 observing members on board.
The collaboration between central and commercial banks in experimenting with CBDCs is driven by the desire to address the inefficiencies in cross-border fiat payments, such as high costs, slow processing times, and operational complexities. The ultimate objective is to establish a comprehensive multi-CBDC infrastructure that is universally accessible.
The core participants of mBridge have worked tirelessly over the years to develop a prototype platform, including the creation of the mBridge blockchain to facilitate real-time, peer-to-peer cross-border payments and foreign exchange transactions.
The anticipated launch of the mBridge MVP is set for September 2023, as announced by Hong Kong Monetary Authority CEO Eddie Yue. Tests have demonstrated that mBridge offers faster, more cost-effective, and transparent cross-border payment solutions. Despite these successes, the BIS has no immediate plans to involve private sector companies in the project.
Yue emphasized that the mBridge MVP is fully capable of handling real-world transactions and is compatible with the Ethereum Virtual Machine.
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Private companies to participate in worldwide central bank digital currency project