As Project mBridge moves into its MVP phase, the Bank for International Settlements (BIS) is reaching out to private sector companies to propose innovative solutions and use cases, aiming to further refine and demonstrate the platform’s capabilities.
Project mBridge, an initiative for a multi-central bank digital currency (multi-CBDC) led by the Bank for International Settlements (BIS), is seeking involvement from private sector entities to advance its prototype into a minimum viable product (MVP).
Launched in 2021 by the BIS Innovation Hub in partnership with the central banks of Thailand, the United Arab Emirates, China, and Hong Kong, Project mBridge has since expanded to include the Saudi Central Bank and 26 observing members.
The initiative aims to address inefficiencies in cross-border fiat payments, such as high costs, slow processing times, and operational complexities, by exploring the potential of central bank digital currencies (CBDCs) to create a universally accessible multi-CBDC infrastructure.
After years of development, the core participants of Project mBridge have created a prototype platform, featuring the mBridge blockchain designed for real-time, peer-to-peer cross-border payments and foreign exchange transactions.
“As Project mBridge progresses into the MVP stage, private sector firms are invited to propose novel solutions and use cases to further enhance the platform and demonstrate its full potential.”
The plan to introduce the mBridge MVP was initially announced by Eddie Yue, CEO of the Hong Kong Monetary Authority (HKMA), in September 2023. Tests conducted at that time showed promising results, indicating that mBridge could offer faster, more cost-effective, and transparent cross-border payments. However, the BIS had not initially considered involving private sector firms. Yue stated:
“We anticipate welcoming additional central banks to join this collaborative platform. Furthermore, we will soon introduce what we call a minimum viable product, with the objective of gradually commercializing mBridge.”
The mBridge MVP has the capability to handle real-world transactions and is designed to be compatible with the Ethereum Virtual Machine (EVM).
Summary Review: The invitation for private sector companies to join the global central bank CBDC initiative, Project mBridge, marks a significant step towards refining and showcasing the potential of multi-central bank digital currency infrastructure. With the project transitioning into its minimum viable product (MVP) phase, private firms have the opportunity to contribute innovative solutions and use cases, further advancing the platform’s capabilities. As Project mBridge aims to address inefficiencies in cross-border payments, collaboration between central banks and private sector entities is crucial in driving forward the development and eventual commercialization of this transformative initiative.
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