China’s Central Bank Finalizes mBridge CBDC Testing for Secure Cross-Border Payments
China has successfully completed testing for its privacy-first central bank digital currency (CBDC) blockchain, known as the ‘mBridge Ledger’ (mBL), designed to enable secure and simultaneous foreign exchange and payment settlements.
At the FinTech Symposium in Hong Kong, Mu Changchun, head of the Digital Currency Institute of the People’s Bank of China, revealed details of the mBridge project. The initiative, which started in February 2021, is a collaboration with several central banks, including those of Hong Kong, Thailand, and the UAE, and aims to enhance cross-border payment systems through advanced blockchain technology.
The pilot phase, conducted between August and September 2022, involved eight commercial banks across the participating countries. It successfully processed nine cross-border payment and forex transactions totaling over one million yuan. Digital yuan transactions made up 5.46% of this activity, focusing on cross-border commerce and interbank dealings.
Mu highlighted the transparency of the mBridge framework, noting that its source code is fully open for inspection and audit by central banks and monetary authorities. The mBridge project sets a new standard for secure, efficient, and private digital currency transactions globally.
