mBridge CBDC Platform gets first digital dirham transfer from UAE by way of
On January 29, the central bank of the United Arab Emirates (UAE) executed its first cross-border digital dirham transfer utilizing the mBridge central bank digital currency (CBDC) platform. The cross-border CBDC transfer, worth 50 million dirhams (approximately $13.6 million), was successfully transmitted to China via the multi-CBDC mBridge platform.
As reported by Gulf News, Sheikh Mansour, the chairman of the board of the Central Bank of the UAE, conducted the CBDC transfer to commemorate the golden jubilee celebration of the bank's establishment.
The mBridge project, launched in 2021, is a collaborative effort between the central monetary authorities of China, Hong Kong, Thailand, and the UAE, in partnership with the Bank for International Settlement (BIS). It stands as the sole international partnership involving China. The project achieved its inaugural pilot in September 2022.
The mBridge platform has successfully integrated various commercial banks from each participating nation to collaborate on infrastructure and technology advancements.
The mBridge ledger platform leverages single-platform, direct-access infrastructure to facilitate real-time, peer-to-peer transactions, employing the HotStuff+ consensus mechanism. This CBDC platform enables faster transfers of each participating country's national digital currency.
Notably, a member of the United States Congress, Representative Maxine Waters, has expressed concerns regarding the mBridge project's potential exploitation to circumvent economic sanctions. Representative Waters, a member of the House Financial Services Committee, voiced her apprehensions during a discussion on global leadership in CBDCs.
The increasing popularity of blockchain technology and digital currencies has prompted governments worldwide to explore the creation of central bank-issued national digital currencies utilizing blockchain technology.
According to a report by the BIS, approximately 90% of central banks worldwide are actively considering the adoption of CBDCs. As of now, 11 countries have already launched CBDCs, 15 are engaged in pilot programs, and 26 are in the development phase, as indicated by the Atlantic Council's CBDC tracker.