China is preparing to commercially launch mBridge, a blockchain-based cross-border payments platform backed by five central banks, as it seeks to offer a faster and cheaper alternative to dollar-dominated systems like SWIFT. The platform, which settles transactions in seconds using digital currencies, is being positioned as a tool to reduce reliance on the U.S. dollar in international trade
The mBridge consortium includes the People’s Bank of China, the Hong Kong Monetary Authority, and the central banks of Thailand, the United Arab Emirates, and Saudi Arabia. A dedicated legal entity will be established in Hong Kong to oversee operations, according to the Financial Times. The platform has already processed cumulative transactions worth approximately 470 billion yuan ($69 billion), with more than 4,000 cross-border transactions completed. China’s digital yuan accounts for about 95 percent of settlement volume
Fees on mBridge are expected to run at roughly half those charged by conventional systems, targeting small and medium-sized enterprises that have long found cross-border payments prohibitively expensive. The system enables participating central banks to transact directly using their respective digital currencies, eliminating the need for foreign exchange intermediaries.
The commercial launch coincides with broader momentum in Beijing’s campaign to internationalize the renminbi. China’s Cross-border Interbank Payment System (CIPS) saw average daily transaction volume reach a record 920.5 billion yuan ($134 billion) in March 2026. “The Middle East conflict may have acted as a catalyst,” said Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered, citing rising demand for yuan settlement particularly in oil trade.
The yuan has strengthened steadily this year, climbing to a three-year high against the dollar in late May before easing slightly. As of mid-June, it was trading near 6.76 per dollar. HSBC projects the currency could reach 6.65 per dollar by year-end
Originally launched in 2021 under the Bank for Internationa Settlements InnovationHub, mBridge faced criticism from U.S. policymakers who feared it could circumvent dollar sanctions. In 2024, the BIS transferred governance to participating central banks. Analysts at the Atlantic Council say mBridge is unlikely to dethrone the dollar outright but could erode its centrality in specific corridors, particularly energy and commodity trade between China and the Gulf
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