Para desafiar la posición internacional de SWIFT, las tarifas de mBridge de China se redujeron a la mitad, impulsando los pagos internacionales

China joins forces with four countries to prepare the launch of the cross-border blockchain payment platform mBridge, focusing on low fees and high efficiency, challenging the SWIFT system and the US dollar's dominance.

China is preparing to launch a cross-border payment network based on blockchain technology called "mBridge" (Multilateral Bank Digital Currency Bridge), supported by five central banks. Currently, it has processed transactions totaling up to 69 billion USD (about 470 billion RMB). As the system prepares to enter commercial operation, this is seen not only as a significant step for China to challenge the US dollar's global trade dominance but also as a potential reshaping of the existing international payment landscape.

China teams up with four countries to promote mBridge, pushing for a new de-dollarized cross-border payment platform

The mBridge platform is led by the People's Bank of China, with other key participants including Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia's central banks. According to sources, a dedicated agency will be established in Hong Kong to oversee its operations. The commercialization of this digital currency project is expected to significantly reduce reliance on the US dollar among participating countries and further strengthen economic ties between Beijing and "Belt and Road" trade partners.

Fees cut in half! mBridge targets small and medium-sized enterprises, challenging SWIFT's dominance

According to the Financial Times, although the specific launch date has not been publicly announced, internal preparations are in the final stages. Compared to the traditional international payment system SWIFT, mBridge's main advantage lies in its use of blockchain technology, reducing foreign exchange transaction times to seconds and cutting fees by 50%. For many small and medium-sized enterprises that find current cross-border payments too costly and cumbersome, mBridge offers a more attractive and practical alternative.

Expanding digital yuan applications, geopolitical tensions boost yuan settlement volume

Recent international geopolitical conflicts have led to a surge in the use of China's traditional cross-border payment system (CIPS, China's version of SWIFT). As a complementary system, mBridge is expanding the market share of the "digital yuan" (e-CNY). Tom Keatinge, director of the Financial and Security Center at the Royal United Services Institute (RUSI) in the UK, pointed out that a "arms race for alternative financial systems" is quietly underway, prompting the US, under President Trump, to start embracing stablecoins pegged to the dollar.

Transaction volume reaches 69 billion USD, blockchain technology disrupts traditional foreign exchange settlement

mBridge not only adopts blockchain technology but also allows central banks to conduct direct transactions using their own digital currencies. This weakens the role of the US dollar as an intermediary currency and reduces foreign exchange transaction times to just seconds.

According to insiders, under the supervision of central banks, commercial banks can also participate. Currently, the platform has processed approximately 47 billion RMB (about 6.9 billion USD). Gene Ma, head of China research at the Institute of International Finance (IIF), stated that the global payment landscape, once dominated by SWIFT, is fragmenting into multiple competing networks, and mBridge is poised to become a key player among them.

Unfazed by international political pressure, the new system complies with global anti-money laundering standards

Looking back at its development history, mBridge originated from the Inthanon-LionRock project, a collaboration between the Hong Kong Monetary Authority and the Bank of Thailand. It expanded in 2021 with the inclusion of the Bank for International Settlements (BIS), China, and the United Arab Emirates.

Although BIS planned to transfer the project to partners in 2024 (with rumors that this was due to political pressure from Washington, which BIS denied), officials from BIS and the People's Bank of China emphasized that the platform fully complies with the Financial Action Task Force (FATF) international standards for anti-money laundering, strictly preventing illegal fund flows. In the long term, this will enhance China's influence in the global monetary order.

• This article is reprinted with permission from: 《Chain News》
• Original title: 《Fees cut directly in half! China promotes mBridge blockchain international payments, challenging SWIFT's dominance》
• Original author: Co2