Project mBridge Empowers Cross-Border Payments with MVP Achievement
The Hong Kong Monetary Authority (HKMA) and the mBridge project team have reached a significant milestone by hitting the Minimum Viable Product (MVP) stage for Project mBridge. This initiative is focused on utilizing central bank digital currencies (CBDCs) to address challenges in cross-border payments, as highlighted by the Hong Kong Monetary Authority.
Advancements in Cross-Border Payments
Project mBridge has built upon insights gained from its pilot phase in 2022 to enhance the prototype platform. These enhancements cover technological, legal, and governance aspects, with validation nodes implemented by the founding central banks in their respective jurisdictions. Moreover, the BIS Innovation Hub has developed a governance framework tailored to the platform’s decentralized nature and a comprehensive legal framework. Commercial banks have already conducted real-value transactions on the MVP platform in readiness for its launch.
Enhanced Participation and Collaboration
As the project moves forward, there will be further refinements to the platform, and involvement from both public and private sectors will be widened. Notably, the Saudi Central Bank has become the next full participant in the mBridge MVP platform. The platform’s high adaptability makes it a suitable testing ground for additional technology solutions, new use cases, and interoperability with other platforms. Private sector entities are encouraged to submit proposals for solutions and use cases through the participation form provided by the BIS Innovation Hub.
Insights from HKMA Leaders
Mr. Eddie Yue, Chief Executive of the HKMA, underlined the importance of collaborative efforts between the central banking sector and the private industry in advancing cross-border payments. He expressed, “The HKMA is delighted to play an active role in this cutting-edge multi-CBDC exploration by the BIS Innovation Hub and to have contributed to the progression of mBridge to the MVP milestone. We warmly invite our central bank counterparts to join us on this mBridge journey, either as users to experience the platform’s benefits firsthand or as co-developers to enhance cross-border payments collectively.”
Looking Ahead
The mBridge MVP platform is set to evolve further, incorporating new technology solutions and use cases to maintain its effectiveness and relevance in cross-border payments. For more details about Project mBridge, visit the BIS website.
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