China-led mBridge Cross-Border Digital Payments Now Exceed 55 Billion Dollars

TLDR

• mBridge has processed over 4,000 cross-border transactions worth $55.5 billion.
• China’s e-CNY accounts for about 95% of mBridge settlement volume.
• The People’s Bank of China plans to allow interest on e-CNY balances.
• BIS exited mBridge in 2024, citing project graduation and distancing from sanctions concerns.

China’s mBridge digital currency platform has surpassed $55 billion in cross-border transactions, signaling rapid growth since its 2022 pilot. Backed by central banks from China, Hong Kong, Thailand, the UAE, and Saudi Arabia, the platform uses central bank digital currencies (CBDCs) to process international payments. With China’s e-CNY contributing 95% of the volume, mBridge is shaping new financial pathways outside traditional dollar-based systems and expanding the reach of digital currencies.

Rapid Growth in Cross-Border Settlements

The mBridge multi-CBDC platform, led by China, has now completed over 4,000 cross-border transactions totaling approximately $55.5 billion. According to data from the Atlantic Council, this marks a sharp increase from the platform’s early stages in 2022. At that time, transactions totaled less than $25 million.

The project includes participation from the central banks of mainland China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia. Nearly 95% of all transactions settled on mBridge have used China’s digital yuan, also known as the e-CNY.

The growth in transaction volume reflects China’s broader strategy to expand its digital currency infrastructure. The People’s Bank of China (PBOC) recently reported that over 3.4 billion domestic e-CNY transactions have been completed, worth around 16.7 trillion yuan, or about $2.4 trillion. This figure represents an 800% increase compared to 2023 levels.

China Expands e-CNY Use for Value Storage

In a move to further expand the role of the e-CNY, China’s central bank is introducing a framework that allows commercial banks to pay interest on digital yuan balances. This change would allow the e-CNY to function beyond daily transactions and operate as a store of value.

PBOC Deputy Governor Lu Lei stated that the aim is to transition the e-CNY into a “digital deposit currency.” This would enable banks to manage digital currency within their asset and liability systems, similar to traditional deposits. Analysts say this development aligns with broader efforts to improve cross-border payment systems.

“Taken together, these developments point to a gradual expansion of the yuan’s internationalization through digital infrastructure,” said Alisha Chhangani, an analyst at the Atlantic Council.

BIS Departure and Project Independence

The Bank for International Settlements (BIS), which helped launch mBridge through its Innovation Hub in 2021, exited the project in 2024. The BIS described the exit as a “graduation,” signaling that the platform had reached a stage of independence.

At the time of the announcement, BIS General Manager Agustín Carstens clarified that the BIS would not support any platforms used by sanctioned countries. “mBridge is not the BRICS bridge,” he stated, in response to concerns that mBridge might enable members to bypass international sanctions. The BIS has since shifted its focus to Project Agorá, involving several Western central banks.

Shift Away from Dollar-Based Systems

Although mBridge is not positioned as a direct rival to the US dollar, the platform is seen as part of an ongoing shift toward alternative settlement systems. China and its project partners are working to reduce reliance on traditional dollar-based payment networks.

The mBridge initiative aims to improve the efficiency, cost, and transparency of cross-border payments among participating countries. The platform is expected to continue growing as central banks test and expand the use of CBDCs for real-time international transactions.

As more countries explore digital currencies, platforms like mBridge may play a larger role in international financial infrastructure, especially in Asia and the Middle East.

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