The Bank for International Settlements (BIS) has announced that its multi-central bank digital currency (CBDC) platform, Project mBridge, has reached the minimum viable product (MVP) stage and is now prepared to accept value-added products and new use cases.
This initiative aims to establish a shared multi-CBDC platform among participating central banks and commercial banks, leveraging distributed ledger technology (DLT) to facilitate instant cross-border payments and settlements. The project has emerged from extensive collaboration that began in 2021, involving the BIS Innovation Hub, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People’s Bank of China, and the Hong Kong Monetary Authority. The Saudi Central Bank is now a full participant, and there are more than 26 additional observing members.
Participating central banks believe that multi-CBDC arrangements, which connect various jurisdictions within a single technical framework, could significantly enhance the current correspondent banking system. Such arrangements could make cross-border payments immediate, cost-effective, and universally accessible with final settlement.
To support real-time, peer-to-peer cross-border payments and foreign exchange transactions, a new blockchain called the mBridge Ledger has been developed. In 2022, a pilot project involving real-value transactions took place, and since then, the mBridge team has been assessing whether the prototype could evolve into an MVP, a milestone now achieved.
The four founding central banks and monetary authorities have each deployed validating nodes, while commercial banks have engaged in real-value transactions in advance of the MVP launch. Simultaneously, the project steering committee has developed a tailored governance and legal framework, including a rulebook, to accommodate the platform’s decentralized nature.
The MVP platform is capable of executing real-value transactions and is compatible with the Ethereum Virtual Machine, positioning it as a testbed for additional technology solutions, new use cases, and interoperability with other platforms.
As it transitions into the MVP phase, Project mBridge is inviting private sector firms to propose innovative solutions and use cases that will further develop the platform and demonstrate its full potential. Interested companies can apply to participate via a participation form available on the BIS website.