China Unveils mBridge to Shake Up Global Payment Landscape

China is launching its mBridge platform to challenge the dominance of the US dollar in international transactions. The platform, developed with support from several central banks, aims to simplify cross-border payments and reduce reliance on correspondent banking.

mBridge uses a custom blockchain ledger where participating central banks issue and trade their own wholesale digital currencies directly with each other. This reduces transaction times and costs, making it attractive to small and medium-sized businesses engaged in cross-border trade.

The platform has already processed around RMB 470 billion ($69 billion) in transactions through pilot programs. Analysts believe mBridge could deepen financial ties between China and its key trading partners while accelerating the internationalization of the renminbi.