mBridge Project: Development of Wholesale CBDC for cross-border transfers
The Multiple CBDC Bridge Project (mBridge) is a collaborative project among Bank of Thailand (BOT), Hong Kong Monetary Authority (HKMA), the Digital Currency Institute of the People’s Bank of China (DCI PBC), Central Bank of the United Arab Emirates, and Bank for International Settlements Innovation Hub in Hong Kong. The mBridge platform demonstrated the enhanced efficiency of cross-border transactions using multi-currency CBDC compared to the current system by eliminating the correspondent banking network, resulting in (1) a substantial decrease in cross-border transfer times from 3-5 days to several seconds, (2) enabling direct peer-to-peer linkages between participating banks which can potentially lower the cost of cross-border transactions. Furthermore, the platform can also (3) reduce settlement risk and (4) support the use of local currencies in international payments.
Going forward, the mBridge project will continue building and testing the technology to improve existing functionalities and add enhanced features to the platform, all the while taking into consideration policy, regulatory and legal implications. Following this, the BOT along with other central banks will consider pursuing experiments in more real-world settings further.