As a seasoned crypto investor with a keen interest in global financial developments, I find the progress of mBridge, the cross-border digital currency platform, particularly intriguing. Having navigated through the volatile world of cryptocurrencies for years, I’ve come to appreciate the importance of trust and mutual understanding, especially when it comes to international collaborations.
The Deputy Governor of China’s Central Bank suggests that nations collaborating on the construction of mBridge should work towards building trust and a shared comprehension of each other’s regulatory systems.
As per a report by SCMP on October 23, deputy governor Lu Lei of the People’s Bank of China stated that for countries collaborating on the development of the central bank digital currency platform called mBridge, it is crucial to uphold each other’s monetary laws and regulations if they aim for their cross-border payment tool to be effective.
At Sibos Beijing on October 23, Lu Lei stated, “We need a fair distribution of duties and privileges among all involved parties, ensuring stability in global monetary and financial structures.
The Money Bridge initiative, or mBridge, refers to a cross-border Central Bank Digital Currency (CBDC) undertaking that’s been established on a unique proprietary blockchain. This exclusive blockchain was developed specifically for this collaborative effort. Participating central banks include those of Hong Kong, Thailand, United Arab Emirates, and China, with the Hong Kong Monetary Authority also participating in the CBDC project.
First introduced in 2021, the project was expected to launch officially in 2024.
Lu emphasized that mBridge needs to eliminate obstacles encountered during cross-border transactions, rather than introducing fresh hurdles. Additionally, it’s essential for mBridge to minimize current market divisions.
Lu further emphasized the importance of avoiding extra geopolitical and regulatory expenses, all while lowering current international transaction fees.
He said that mBridge serves to provide services and resolve problems that banks are unequipped to handle, namely cross-border e-commerce payments and remittance.
Lu anticipates that the cross-border Central Bank Digital Currency (CBDC) project may foster stronger collaborations within ASEAN and the Belt and Road Initiative, thanks to the close economic interconnections and generally steady political climate between these regions.
As for the potential impact of mBridge on the dominance of the U.S. dollar, the former governor of the People’s Bank of China, Zhou Xiaochuan, stated that it largely depends on decisions made by the U.S. government itself.
According to Zhou, the connection between mBridge and the US dollar (or other currencies) isn’t solely influenced by technological advancements; it’s also significantly shaped by the policies enacted in Western nations.
In Nov. 2023, a Chinese official revealed that mBridge has completed the testing phase.
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2024-10-23 14:56