Project mBridge, built to improve the key inefficiencies in cross-border payments, has reached the minimum viable product (MVP) stage while broadening its international reach.
More recently, the Saudi Central Bank has joined the project as a full participant. With Saudi Arabia on-board, there are now more than 26 observing members.
The aim of the mBridge project is to build a multi-central bank digital currency (CBDC) platform shared among participating central banks around the world, alongside commercial banks. It will be built using distributed ledger technology (DLT) to enable instant cross-border payments and settlement.
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The History Of Project mBridge
The conception of Project mBridge began in 2021, with early discussions taking place between the BIS Innovation Hub, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People’s Bank of China and the Hong Kong Monetary Authority.
mBridge is going live. Who are the players, what is involved, when is it going live, and what are the usecases for it?
Let's take a deep dive and find out.#mbridge #DLT pic.twitter.com/D1y0NQRMUM— Mr. Man (@MrManXRP) February 6, 2024
The ultimate goal of mBridge is to improve on the key inefficiencies in cross-border payments via a global CBDC. The main identified issues with the current system include high costs, low speed and operational complexities.
The group built a platform based on a new blockchain, named the ‘mBridge Ledger’ with the aim to support real-time, peer-to-peer (P2P), cross-border and foreign exchange transactions.
A pilot program was launched in 2022, whereby real-value transactions were conducted successfully.
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Global CBDC Project Now Entering MVP Stage
Following the success of the pilot program, mBridge has now reached the MVP stage. This was achieved after the four founding central banks and monetary authorities deployed a validating node on the mBridge Ledger blockchain. The participating commercial banks have also conducted a number of real-value transactions.
The project participants have also created a tailor-made governance and legal framework to ensure compatibility with the platform’s decentralised nature. With Project mBridge now entering the MVP stage, it has opened itself up to private sector firms in a bid to receive new solutions and use cases that can help to develop the platform further.
Update for mBridge CBDC Project, $QNT
── Saudi Arabia has joined forces with China on reducing the dollar dependence in trade.
With the BRICS wanting to create a new monetary system / currency that is gold backed,
It can severely hit the US Dollar as being the biggest…
— Clockyy (@oClockyy) June 24, 2024
Observing members of Project mBridge (as of June 2024) include Asian Infrastructure Investment Bank, Bangko Sentral ng Pilipinas, Bank Indonesia, Bank of France, Bank of Israel, Bank of Italy, Bank of Korea, Bank of Namibia, Central Bank of Bahrain, Central Bank of Chile, Central Bank of Egypt, Central Bank of Jordan, Central Bank of Malaysia, Central Bank of Nepal, Central Bank of Norway, Central Bank of the Republic of Türkiye, European Central Bank, International Monetary Fund, Magyar Nemzeti Bank, National Bank of Cambodia, National Bank of Georgia, National Bank of Kazakhstan, New York Innovation Centre, Federal Reserve Bank of New York, Reserve Bank of Australia, Saudi Central Bank, South African Reserve Bank and World Bank.
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