China-backed cross-border digital currency platform mBridge has processed more than $55 billion in transactions, signaling accelerating momentum behind alternative global payment infrastructure. The platform is designed to facilitate settlements outside traditional dollar-dominated systems.
mBridge is a multi-central bank digital currency initiative involving several major economies. Its rapid growth highlights increasing interest in CBDC-based cross-border settlement networks.
Explosive Growth Since Pilot Phase
According to data compiled by the Atlantic Council, mBridge has now settled more than 4,000 transactions. The cumulative value of those payments stands at approximately $55.5 billion.
That figure represents nearly a 2,500-fold increase since the project’s early pilot phase in 2022, underscoring how quickly adoption has scaled.
Participating Countries and Currency Dominance
The platform is currently being tested by central banks in China, Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia. China’s digital yuan accounts for an estimated 95% of total settlement volume.
The dominance reflects China’s aggressive push to integrate its CBDC into both domestic and cross-border payment systems.
Rapid Expansion of the Digital Yuan
Figures from the People’s Bank of China show that domestic adoption has accelerated sharply. The e-CNY has processed more than 3.4 billion transactions worth roughly 16.7 trillion yuan, or $2.4 trillion.
That marks an increase of more than 800% compared with transaction volumes recorded in 2023.
Interest-Bearing Digital Yuan Framework
China’s central bank is now expanding the digital yuan’s functionality. A new framework will allow commercial banks to pay interest on e-CNY wallet balances.
PBOC Deputy Governor Lu Lei said the digital yuan will transition into a “digital deposit currency,” integrating it into banks’ asset and liability management systems.
Implications for Global Payments
Atlantic Council analyst Alisha Chhangani said the developments reflect gradual yuan internationalization rather than a direct challenge to the U.S. dollar.
“Taken together, these developments point to a gradual expansion of the yuan’s internationalization through digital infrastructure,” she said. She added that the strategy focuses on building parallel settlement rails rather than replacing existing systems outright.
BIS Steps Back From mBridge
In 2024, the Bank for International Settlements exited active involvement in mBridge. The BIS described the move as a “graduation” rather than a withdrawal from the project.
General Manager Agustín Carstens rejected claims that mBridge was designed to help countries bypass sanctions. “mBridge is not the BRICS bridge,” he said, adding that BIS systems cannot be used by sanctioned nations.
Shift Toward New CBDC Experiments
Following its departure from mBridge, the BIS has shifted attention to Project Agorá. The initiative involves several Western central banks and recently announced expanded testing.
The move signals continued global experimentation with digital settlement infrastructure, even as geopolitical concerns continue to shape CBDC development.
