Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue has revealed plans to significantly expand the mBridge project, which involves a central bank digital currency ( CBDC ).
In his speech in Shanghai, Yue stated that the tests demonstrated mBridge's ability to deliver faster, more cost-effective and more transparent cross-border payments.
First launched in 2021, the project involves the HKMA and central banks from China, Thailand and the United Arab Emirates.
It also includes commercial banks and the Bank's International Payments Innovation Centers from those regions. Now, mBridge is preparing for expansion and commercialization.
Yue said:
“We hope to welcome more central banks to this open platform. And we will soon launch what we call a minimum viable product, with the aim of paving the way for the gradual commercialization of mBridge.”
How central banks can participate in the mBridge project
Officials involved in the project have previously emphasized that the central bank does not necessarily need to have its own fully launched CBDC to participate.
Currently, all participating central banks have CBDCs in the pilot project phase. To date, only the Bahamas, Jamaica and Nigeria have officially launched CBDCs, as reported by CBDC Tracker.
mBridge 's progress has attracted attention in the US Congress.
During Representative Tom Emmer's discussion of the Anti-CBDC Surveillance House Act on September 20, Maxine Waters, ranking member of the House Financial Services Committee, expressed concern that the project could used to evade economic sanctions.
Experts note that the effectiveness of CBDCs in evading sanctions depends on their adoption.
Additionally, mBridge stands out as the only international CBDC project in which China participates.
The digital yuan, part of the project, represents the world's most widespread CBDC pilot program.
The People's Bank of China has signed multiple agreements with international companies and commercial banks to promote the adoption of the digital yuan.
As a result, BNP Paribas China and DBS Bank China have enabled their corporate clients to integrate the digital yuan into their operations by 2023.
Earlier this month, Eddie Yue Wai-man, CEO of the Hong Kong Monetary Authority, was appointed to a key position at the Bank for International Settlements (BIS).
BIS is a famous international financial institution supported by the majority of central banks in the world.
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