China’s digital yuan has processed more than $55 billion in transactions through the mBridge cross-border payments platform, according to a Reuters report citing Atlantic Council data.
The mBridge system enables real-time cross-border payments and foreign exchange using central bank digital currencies.
Around 95% of the total transaction volume on mBridge was settled using China’s e-CNY.
The platform bypasses traditional payment networks by removing intermediaries and using smart contracts for compliance and settlement.
Transactions on mBridge reportedly settle within seconds at near-zero cost.
The People’s Bank of China uses the platform alongside central banks from Hong Kong, Thailand, the UAE, and Saudi Arabia.
More than 20 commercial banks are also participating in the mBridge system.
Data shows the platform has processed over 4,000 cross-border transfers to date.
“Taken together, these developments point to a gradual expansion of the yuan’s internationalisation through digital infrastructure,”
Alisha Chhangani said.
“Project mBridge is unlikely to challenge dollar dominance directly, but it may incrementally erode it,”