Para desafiar a posição internacional do SWIFT, as taxas de transação do mBridge na China foram reduzidas pela metade, atacando fortemente os pagamentos internacionais

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 blockchain-based cross-border payment network called "mBridge" (Multilateral Central Bank Digital Currency Bridge), supported by five major central banks. To date, it has processed transactions totaling up to 69 billion USD (approximately 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 current international payment landscape.

China joins four countries to promote mBridge, a new platform for de-dollarized cross-border payments

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 halved! mBridge targets small and medium-sized enterprises, challenging SWIFT's dominance

According to the Financial Times, although the specific launch date remains undisclosed, 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 just a few seconds and cutting fees by 50%. For many SMEs 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 supplementary system, mBridge is expanding the market share of the "digital yuan" (e-CNY). Tom Keatinge, director of the Royal United Services Institute (RUSI) Financial and Security Centre in the UK, pointed out that a "arms race for alternative financial systems" is quietly underway, prompting the US, under President Trump, to begin embracing stablecoins pegged to the dollar.

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

mBridge not only employs 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 a few seconds.

Sources reveal that under the supervision of central banks, commercial banks can also participate. The platform has already processed approximately 470 billion RMB (about 69 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, with mBridge poised to become a key player.

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

Looking back at its development, 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 plans to transfer the project to partners in 2024 (with some reports suggesting US political pressure influenced this, which BIS denies), officials from BIS and the People's Bank of China emphasize 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 directly cut in half! China launches mBridge blockchain international payments, challenging SWIFT's dominance》
• Original author: Co2