China is moving towards the commercial rollout of mBridge, a cross-border digital currency platform positioned as an alternative to established international payment networks such as Swift, the Financial Times reported.
The project could change the way international transactions are handled, reduce dependence on the US dollar and deepen financial links between Beijing and its Belt and Road trading partners, according to the report.
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mBridge is backed by the central banks of mainland China, Hong Kong, Thailand, the United Arab Emirates (UAE) and Saudi Arabia.
A Hong Kong-based entity is set to be established to run the platform, people familiar with the matter told the FT.
The report said those sources did not disclose a launch date. However, they said preparations were well advanced.
They also said transaction fees on mBridge would be about half those charged by traditional international payment systems.
According to the report, the platform is expected to attract smaller businesses that have found existing cross-border networks, including Swift, costly and difficult to use.
The development comes as other regional payment systems are also expanding. These include the European Central Bank’s Sepa initiative and private-sector efforts such as Ant Group’s cross-border QR code network.
Such systems are aimed at making transactions faster and cheaper, particularly for smaller, real-time payments used by tourists.
mBridge began as an earlier joint initiative between the Hong Kong Monetary Authority and the Bank of Thailand under the name Inthanon-LionRock.
It took on its current name and structure in 2021, with the involvement of the Bank for International Settlements (BIS) and the central banks of Dubai, China and the UAE.
The project has faced repeated public and political scrutiny over whether it could help countries or entities bypass the dollar-based financial system and avoid sanctions.
In 2024, the BIS handed the project over to its partners. The Financial Times has previously reported that this decision was made under pressure from Washington.
The BIS and officials at the People’s Bank of China have said mBridge complies with the Financial Action Task Force’s anti-money laundering rules.
The FATF is the international body tasked with tackling illicit financing networks.
The platform, now led by Beijing, uses blockchain technology to enable direct transactions between central banks using their own digital currencies.
That structure reduces the dollar’s role as an intermediary currency.
People familiar with the project said commercial banks would also be able to participate in mBridge transactions, under the supervision of their central banks.
So far, the platform has processed about 470bn yuan ($69bn) in transactions, those sources said.
The People’s Bank of China declined to comment to the Financial Times.
