English
What Is mBridge and Why Does It Matter?
Project mBridge is a blockchain-based platform that enables near-instant cross-border payments and settlements using central bank digital currencies (CBDCs), bypassing the traditional SWIFT network and dollar-denominated correspondent banking. In April 2026, under India's BRICS chairship, the platform reached live operational scale with a minimum viable product (MVP) stage, processing over $55 billion in transactions. The Bank for International Settlements (BIS) formally exited the project in late 2025 over sanctions concerns, but mBridge continues to operate independently, representing the most tangible challenge to the dollar-dominated global payments architecture in decades.
The BRICS de-dollarization strategy has found its most concrete expression in mBridge. With China, the UAE, Thailand, Hong Kong, and Saudi Arabia already moving real value through the network, and India proposing to link its e-Rupee with China's digital yuan, Brazil's Drex, and Russia's digital ruble, the platform is forcing multinational corporations and central banks to confront a fracturing global payments landscape.
Background: From BIS Experiment to Independent Platform
Launched in 2021 by the BIS Innovation Hub, the People's Bank of China, the Hong Kong Monetary Authority, the Central Bank of the UAE, and the Bank of Thailand, mBridge was initially a multilateral experiment in CBDC interoperability. The Saudi Central Bank joined in 2024. Built on the mBridge Ledger—a distributed ledger compatible with the Ethereum Virtual Machine—the platform allows commercial banks to issue CBDC claims against central bank reserves and settle cross-border transactions in real time.
In October 2024, the BIS handed over the project to its partner central banks after reaching the MVP stage. However, in 2025, the BIS formally withdrew, with CEO Agustín Carstens citing concerns that the technology could be used to circumvent sanctions. Russian President Vladimir Putin had endorsed mBridge as a model for a unified BRICS system to bypass financial restrictions. Despite the BIS exit, the platform's governance structure—with equal voting rights for all participants—remains intact, and the project continues to comply with international financial crime and sanctions standards.
How mBridge Works: Technical Architecture and Scale
mBridge uses a custom-designed distributed ledger to facilitate peer-to-peer cross-border payments and foreign exchange transactions. Central banks issue digital currencies onto the platform, and commercial banks can transact directly without intermediaries. The system supports real-time gross settlement, reducing settlement times from days to seconds and cutting costs significantly.
According to Forbes, as of mid-2026, mBridge has processed approximately $55.5 billion in transactions, with 95% denominated in digital yuan. This effectively makes mBridge a renminbi-denominated rail between China and the Gulf states, operating entirely outside the dollar-based correspondent banking system. The platform has over 30 observer members, including the European Central Bank, the IMF, and the Federal Reserve Bank of New York, though their status remains uncertain after the BIS withdrawal.
India's 2026 BRICS Chairship: CBDC Interoperability as a Flagship
India assumed the BRICS chairship in 2026 with CBDC interoperability as its flagship agenda. The Reserve Bank of India (RBI) has proposed a framework to link its e-Rupee with the digital currencies of other BRICS members—China's digital yuan, Brazil's Drex, Russia's digital ruble, and South Africa's digital rand. The proposal aims to enable seamless cross-border digital currency transactions, reducing reliance on traditional banking intermediaries and the US dollar.
The India CBDC e-Rupee adoption is a key component of this strategy. India's digital rupee pilot, launched in 2022, has already reached over 5 million retail users. The RBI's framework for BRICS CBDC interoperability is expected to be a central topic at the 2026 BRICS summit, with an exploratory phase beginning in 2026–2027. If successful, this would create a multi-currency CBDC network spanning the Global South's largest economies.
Impact on Global Payments Architecture
The emergence of mBridge as an independent platform represents a structural shift in global finance. For decades, cross-border payments have relied on the SWIFT messaging system and a network of correspondent banks, with the US dollar as the dominant settlement currency. mBridge offers an alternative that is faster, cheaper, and immune to unilateral sanctions.
Multinational corporations operating in BRICS countries now face a choice: continue using traditional dollar-based channels or adopt mBridge for settlements. The multilateral CBDC interoperability challenges are significant, but the incentives are growing. McKinsey's 2026 trade update confirms that global commerce is fracturing along geopolitical lines, with aligned nations trading increasingly within blocs. mBridge is both a symptom and a driver of this fragmentation.
The BIS has launched a competing project, Project Agorá, which involves G7 central banks, JP Morgan, Citi, and SWIFT. Agorá tokenizes the existing correspondent banking system rather than replacing it, aiming to improve efficiency within the dollar framework. Meanwhile, the Global South is bypassing both via bilateral instant-payment systems like India's UPI and ASEAN's regional payment connectivity. The result is a fragmented map of bloc-specific corridors, with no single global CBDC rail emerging.
Expert Perspectives
"mBridge is the most concrete step yet toward de-dollarization," says a senior analyst at the Atlantic Council's GeoEconomics Center. "It's not just an experiment—it's processing real money and real trade. The BIS withdrawal only accelerated its independence."
However, critics warn of risks. "Operating outside the dollar system means operating outside its legal and regulatory framework," notes a former Federal Reserve official. "Sanctions compliance, anti-money laundering, and dispute resolution become much more complex."
Frequently Asked Questions
What is mBridge?
mBridge is a blockchain-based platform that enables instant cross-border payments using central bank digital currencies, bypassing SWIFT and the dollar-based correspondent banking system.
Which countries are part of mBridge?
The founding members are China, Hong Kong, Thailand, and the UAE. Saudi Arabia joined in 2024. India, Brazil, and Russia are proposing to link their CBDCs through the platform.
Why did the BIS withdraw from mBridge?
The BIS withdrew in 2025 over concerns that the technology could be used to circumvent sanctions, particularly after Russia proposed mBridge as a model for a sanctions-proof payment system.
How much value has mBridge processed?
As of mid-2026, mBridge has processed approximately $55.5 billion in transactions, with 95% in digital yuan.
What does mBridge mean for the US dollar?
mBridge represents a direct challenge to the dollar's dominance in cross-border payments, offering an alternative settlement rail for trade among BRICS and other Global South nations.
Conclusion: A Fracturing but Not Broken System
mBridge's evolution from a BIS experiment to an independent operational platform marks a decisive inflection point in the de-dollarization drive. Under India's 2026 BRICS chairship, the push for CBDC interoperability is accelerating, but the global payments architecture is fracturing into competing blocs rather than converging on a single standard. For multinational corporations and central banks, the era of a unified global payments system is giving way to a more complex, multipolar landscape. The future of global payments 2026 will be defined not by one system, but by the competition between them.
Follow Discussion