CBUAE Launches Project mBridge MVP for Cross-Border CBDC Payments

UAE, 6 June, 2024 : The Central Bank of the UAE (CBUAE) has successfully launched the Minimum Viable Product (MVP) platform of Project mBridge, in collaboration with the Bank for International Settlements Innovation Hub Hong Kong Centre, the Hong Kong Monetary Authority, the Bank of Thailand, and the Digital Currency Institute of the People’s Bank of China. This marks the first multi-central bank digital currency (CBDC) platform to reach the MVP stage, facilitating efficient, low-cost, and instant cross-border payments.

Project mBridge aims to revolutionize cross-border payments by utilizing distributed ledger technology. In January 2024, His Highness Sheikh Mansour Bin Zayed Al Nahyan initiated the first cross-border payment of the 'Digital Dirham' to China, marking a significant milestone for the platform.

Several UAE licensed financial institutions (LFIs) have now been onboarded to the mBridge platform, enabling them to process cross-border CBDC payments. The CBUAE expects increased adoption of the platform among participating jurisdictions, with ongoing enhancements as it progresses towards full production launch.

The mBridge platform is a crucial component of the CBUAE’s Financial Infrastructure Transformation (FIT) programme, aimed at accelerating the digital transformation of the UAE’s financial sector. It represents Phase 1 of the CBUAE’s broader CBDC strategy, with Phase 2 focusing on domestic CBDC payments and further cross-border advancements.

His Excellency Khaled Mohamed Balama, Governor of the CBUAE, highlighted that the initiative aligns with the UAE’s goals of fostering innovation, efficiency, and financial inclusion. By collaborating internationally, the CBUAE seeks to create a more secure, economical, and interconnected global payment infrastructure.

Source : www.centralbank.ae