China is preparing a commercial launch of Mbridge, a blockchain-based platform for cross-border settlements using central bank digital currencies (CBDCs), positioning it as a lower-cost alternative to the SWIFT international payment system. The project, initially developed with Hong Kong, Thailand, the UAE, Saudi Arabia, and the Bank for International Settlements (BIS), continued under Chinese leadership after BIS withdrew in 2024. A key milestone was reached when Sheikh Mansour Bin Zayed Al Nahyan sent 50 million digital dirhams to China via Mbridge, demonstrating the system’s operational readiness.

Transaction volume on Mbridge has already reached 470 billion yuan ($69 billion), and China plans to establish a Hong Kong-based entity to promote the digital yuan globally. The platform is said to charge about half the fees of traditional systems like SWIFT, aiming to ease liquidity strains and accelerate cash turnover. This move aligns with broader efforts to internationalize the renminbi, especially as its use grows in regions like the Gulf.

Wang Jian, chief financial sector analyst at Guosen Securities, emphasized that Mbridge could strengthen China’s influence in the global monetary system. While the platform is not yet fully global, its scale and backing suggest a strategic shift in how cross-border finance may operate in the coming years.