New CBDC System Could Dethrone US Dollar! 🚨

Unveiling the New CBDC System That Could Replace the US Dollar

Many countries, including China, are exploring ways to move away from the US dollar. China and its allies are developing an alternative CBDC system with the help of the Bank for Central Banks, the BIS. This new system aims to revolutionize the way central banks and governments control digital currencies.

Exploring the Two Types of CBDC Systems

There are two types of CBDC systems: retail and wholesale. Retail CBDCs are for the average person, while wholesale CBDCs are for select individuals and institutions. The BIS has been coordinating the development of both types of CBDC systems worldwide.

Retail CBDCs: Designed for average individuals and subject to surveillance and control by central banks and governments.
Wholesale CBDCs: Intended for select individuals and institutions, developed with the help of the BIS.

Merging Wholesale CBDC Projects: The Birth of mBridge

mBridge is a multi-CBDC system resulting from a collaboration between two wholesale CBDC projects: Lionrock by the Hong Kong Monetary Authority and Inthanon by the Central Bank of Thailand. These projects came together to create a cross-country wholesale CBDC prototype, which evolved into mBridge with the involvement of the BIS and central banks of China and the UAE.

Origin of mBridge: Collaboration between Hong Kong and Thailand’s CBDC projects
Development and Prototyping: Involvement of China, the UAE, and BIS in mBridge project

Implementing the mBridge Prototype

The mBridge project completed a proof of concept test in September 2021, indicating the successful collaboration between commercial banks from different jurisdictions. The project aims to revolutionize cross-border payments and reduce transaction costs and complexities in the global financial system.

Successful Pilot: Commercial banks from four jurisdictions participated in real value transactions
Implementation Progress: Projected launch of MVP in the first half of 2024

Key Features of the mBridge Platform

Based on Ethereum technology, the mBridge platform utilizes a novel consensus mechanism called dashing consensus. The system ensures privacy and confidentiality through pseudonymous addresses while remaining compliant with ISO20022 messaging standards.

Blockchain Technology: Built on Ethereum technology with dashing consensus mechanism
Privacy and Compliance: Maintaining confidentiality and adhering to ISO20022 messaging standards

Understanding the Implications of the mBridge MVP

The launch of the mBridge MVP could have significant implications for the global financial system. As central banks adopt this new CBDC system, it may weaken the dominance of the US dollar in international trade transactions. The implementation of mBridge could potentially reshape the existing financial landscape and lead to geopolitical tensions.

Hot Take: Brace for Geopolitical Tensions as the CBDC Revolution Unfolds

Watch out for the emergence of the mBridge MVP and its impact on the US dollar and global financial markets. The rise of a new CBDC system could trigger geopolitical conflicts and market volatility as countries transition away from traditional currencies. Stay informed and prepared for potential disruptions in the financial world.