China-led efforts to build a cross-border digital currency network outside traditional dollar-based payment systems have gained significant traction. The multi-central bank digital currency (CBDC) platform known as mBridge has now processed transactions worth more than $55 billion. This rapid growth shows how digital currency infrastructure is moving from theory into real-world use.
mBridge Records Rapid Growth in Cross-Border Payments
mBridge has grown far beyond its early testing stage. The platform has now handled several cross-border transactions with a combined value exceeding $55 billion. This marks an increase of nearly 2500 times compared with its early pilot stage in 2022. This confirmed that central banks are increasingly willing to test new ways of settling international payments. The system is being used by central banks in China, Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia. Most of the activity on the platform comes from China’s digital yuan, which makes up 95% of the settlement volume moving through mBridge.
Digital Yuan Expansion Drives mBridge Activity
The growth of mBridge closely follows the rapid expansion of China’s digital currency system. Data from the People’s Bank of China shows the digital yuan has handled over 3.4 billion transactions. Its total value is about 16.7 trillion yuan, equivalent to $2.4 trillion. This represents growth of more than 800% compared with 2023. China’s central bank has also introduced a new framework that allows commercial banks to pay interest on digital yuan wallet balances. The change aims to make it more attractive for wider financial use. Under the new rules, banks can also add the digital yuan to their balance sheets. This helps turn it into a form of digital bank deposit. As a result, the digital yuan can be used not just for payments, but also for saving money and for cross-border transactions. This change strengthens its role in China’s financial system. It also supports its use in international payments through platforms like mBridge.
Global Push to Upgrade Cross-Border Payments with Digital Currencies
Analysts see these moves as a slow and careful plan to expand the yuan’s global use through digital systems. China and its partners are not trying to replace the U.S. dollar. Instead, they are creating alternative payment networks that rely less on dollar-based systems. In 2024, the Bank for International Settlements (BIS) reduced its direct role in mBridge after supporting it since 2021. The BIS called this a “graduation,” meaning the project was developed enough to move forward on its own. The BIS has also said mBridge cannot be used to avoid international sanctions and that sanctioned countries cannot access its systems. Even so, the fact that some mBridge members are also part of BRICS has sparked political debate. These efforts show a global push to upgrade cross-border payments using digital currency technology.