The mBridge digital currency platform, spearheaded by China and operated in cooperation with central banks from Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia, has recently achieved a transaction volume exceeding $55 billion according to new data analyzed by the Atlantic Council. This volume corresponds to more than 4,000 recorded cross-border transactions since the platform's early 2022 launch.
This surge is remarkable, representing an approximately 2,500-fold increase from the initial stages of the project. Currently, the digital yuan, or e-CNY, constitutes nearly 95% of the value transacted on the platform. Previously established as the world's most substantial active central bank digital currency experiment, the e-CNY recently noted a significant uptick in adoption. The People's Bank of China (PBOC) reported handling over 3.4 billion e-CNY transactions valued at around 16.7 trillion yuan, equal to approximately $2.4 trillion, marking an over 800% increase year-over-year for 2023.
Further bolstering the currency's appeal, Chinese state media reported a forthcoming initiative whereby digital yuan holders will earn interest on their digital accounts and wallets, intended to enhance user engagement.
Analyst Alisha Chhangani from the Atlantic Council remarked that these developments point to a steady broadening of the yuan's international presence through supportive digital infrastructure rather than an abrupt challenge to the dominance of the US dollar in global finance. She emphasized that China and its partner nations are constructing parallel payment systems, which could gradually reduce dependence on existing dollar-centered settlement networks.
The mBridge project was initially under the supervision of the Bank for International Settlements (BIS) but witnessed the BIS’s unexpected withdrawal in late 2024. The BIS has since shifted focus toward collaborative efforts with Western central banks and commercial institutions on an alternative platform currently in testing phases.
Despite this, mBridge holds a developmental lead, exemplified by the United Arab Emirates’ Ministry of Finance and Dubai’s Department of Finance conducting the first government transaction via wholesale digital dirham on the system last November.
Looking forward, the platform is expected to concentrate increasingly on facilitating trade settlements, with a particular emphasis on energy and commodity-linked markets where China maintains significant commercial influence.
As of the latest exchange rates, $1 equates to 6.9675 Chinese yuan renminbi.