HKMA CEO Eddie Yue Forecasts Major Expansion for mBridge CBDC Project, Seeks Global Adoption
Summary:
The central bank digital currency (CBDC) project, mBridge, is set for significant expansion, according to Eddie Yue, CEO of the Hong Kong Monetary Authority (HKMA). The project, a joint effort by central banks from China, Thailand, UAE and the HKMA, was introduced in 2021 and aims to provide faster, cheaper, and transparent cross-border transactions. Yue envisions welcoming more central banks and the commercialization of mBridge soon. The project also gains attention in the U.S. Congress due to concerns about its potential use in evading economic sanctions. Notably, mBridge is China's only international CBDC project, with the country boasting the world's largest CBDC pilot, the digital yuan.
Eddie Yue, CEO of the Hong Kong Monetary Authority (HKMA), has indicated that the central bank digital currency (CBDC) project known as mBridge may soon undergo extensive expansion. During a recent keynote address in Shanghai, Yue outlined that test findings suggest mBridge offers a more cost-effective, swift, and transparent method of executing cross-border transactions. The project, in which the HKMA, the central banking institutions of China, Thailand and the United Arab Emirates are involved, was set in motion in 2021. The expansion would entail the commercialisation of mBridge, which is also backed by commercial banks from the participating jurisdictions and the Bank for International Settlements Innovation Hub (BISIH). “Our expectation is to see an increase in the number of central banks becoming part of this open platform. We are soon going to launch a minimum viable product as a stepping stone towards the slow and steady commercialisation of mBridge,” commented Yue. The project's officials have previously stated that the participation of a central bank does not require it to possess its own CBDC. At present, all participating members are in the pilot stages of their respective CBDCs, with only the Bahamas, Jamaica, and Nigeria having officially launched such currencies, as per information on cbdctracker.org. The progress of mBridge has also been recognized by the United States Congress. Maxine Waters, the House Financial Services Committee's ranking member, expressed worries on September 20 that the project might be used to circumvent economic sanctions. The potential for CBDCs to evade sanctions effectively requires widespread adoption, experts suggest. mBridge is the solitary international CBDC project with Chinese involvement. Its digital yuan is presently the world's most extensive CBDC pilot, while the People’s Bank of China has secured multiple agreements with international businesses and commercial banks to amplify digital yuan adoption. As such, both BNP Paribas China and DBS Bank China are set to make digital yuan integrations accessible to their corporate clients in 2023. Eddie Yue Wai-man, the HKMA's chief executive, was recently assigned a pivotal role at the Bank for International Settlements, an international fiscal institution supported by most of world's central banks.
Published At
9/25/2023 8:19:59 PM
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