China’s cross-border central bank digital currency (CBDC) platform, mBridge, has seen remarkable expansion, processing over $55.5 billion in cumulative transactions since its launch. According to recent data, this represents roughly a 2,500-fold increase since 2022, highlighting the platform’s rapid adoption among participating central banks.
Digital yuan dominates settlement volume
The platform includes central banks from mainland China, Hong Kong, Thailand, the UAE, and Saudi Arabia, with the digital yuan accounting for approximately 95% of total settlement volume. This underscores China’s continued push to integrate its CBDC into cross-border payments and reduce reliance on dollar-based systems.
Growing domestic momentum for e-CNY
Domestically, the People’s Bank of China reports over 3.4 billion transactions worth around $2.4 trillion, marking an 800% increase from 2023. New regulatory frameworks now allow commercial banks to pay interest on digital yuan holdings, further transforming the e-CNY from digital cash into a “digital deposit currency.”
The Bank for International Settlements (BIS) exited mBridge in 2024, shifting focus to the Western-led Project Agorá, involving central banks like the Federal Reserve, Bank of England, and Bank of Japan. While mBridge is unlikely to directly challenge dollar dominance, analysts suggest it may incrementally influence global payment systems and expand China’s digital currency footprint.
This growth highlights the increasing role of CBDCs in cross-border transactions, positioning China at the forefront of digital currency innovation.
Disclaimer
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