Project mBridge, a multi-central bank digital currency (multi-CBDC) initiative led by the Bank of International Settlements (BIS), is seeking the involvement of the private sector to progress its prototype towards a minimum viable product (MVP). Initiated in 2021 by the BIS Innovation Hub in partnership with the central banks of Thailand, the United Arab Emirates, China, and Hong Kong authorities, the project later welcomed the Saudi Central Bank and 26 observing members.
The primary aim of Project mBridge is to tackle the inefficiencies in cross-border fiat payments, including high costs, slow transaction speeds, and operational complexities. The ultimate vision is to establish a universally accessible multi-CBDC infrastructure.
Over time, the core participants of mBridge have worked on developing a prototype platform that features the mBridge blockchain for facilitating real-time, peer-to-peer cross-border payments and foreign exchange transactions.
As the project moves into the MVP phase, it is inviting private sector entities to propose innovative solutions and explore potential use cases to enhance the platform's capabilities and demonstrate its full potential. The launch of the mBridge MVP was initially planned for September 2023, as disclosed by Hong Kong Monetary Authority (HKMA) CEO Eddie Yue.
The tests conducted on mBridge have indicated that it offers quicker, more cost-effective, and transparent cross-border payments. However, at that time, the BIS did not have intentions to include private sector firms in the initiative. The focus was on expanding the participation of central banks in this open platform, with the upcoming release of the minimum viable product paving the way for the gradual commercialization of mBridge.
Technically, the mBridge MVP is designed to facilitate real-world transactions and is compatible with the Ethereum Virtual Machine (EVM).
A recent report by the BIS highlighted that a significant proportion of central banks worldwide are expected to adopt generative artificial intelligence (AI) tools for cybersecurity. This shift toward AI adoption aims to enhance cybersecurity measures and improve responses to cyber threats. Despite the benefits, central banks are concerned about the associated costs of implementing generative AI tools.
