While CBDC's represent the opposite of financial freedom and self-custody that we all love in Crypto, it is necessary to be aware and cautious of the global development of blockchain by Central banks.
Project mBridge is an ambitious collaboration between the BIS Innovation Hub and central banks from China, Hong Kong, Thailand, UAE, and recently Saudi Arabia, aiming to revolutionize cross-border payments using blockchain technology and wholesale CBDCs.
Launched in 2021, mBridge seeks to address inefficiencies in traditional systems like SWIFT by enabling faster, cheaper, and direct peer-to-peer transactions through its custom-built mBridge Ledger.
Key features include instant atomic settlement, privacy-compliant data encryption, and integration with domestic systems like China's eCNY.
The platform has gained traction with over 20 commercial banks and global observers like the IMF and World Bank participating in trials. While not a direct SWIFT replacement, mBridge offers a decentralized alternative that reduces costs and delays, though its exclusion of USD and regulatory challenges present hurdles.
With its recent MVP launch and live transactions underway, mBridge holds promise for reshaping global payments, especially in fostering regional trade and financial inclusion.
