Project mBridge, a multi-central bank digital currency (multi-CBDC) initiative by the Bank fo International Settlements (BIS), seeks private sector participation to further develop its prototype into a minimum viable product (MVP).
Project mBridge was started in 2021 by the BIS Innovation Hub in collaboration with the central banks of Thailand and the United Arab Emirates, as well as Chinese and Hong Kong authorities. Eventually, the project was joined by the Saudi Arabian central bank and 26 observing members.
The central and commercial banks experimented with CBDCs to address inefficiencies in cross-border fiat payments, such as high costs, low speed and operational complexities. The end goal is to create a “universally accessible” multi-CBDC infrastructure.
Over the years, core mBridge participants developed a prototype platform, which involved creating the mBridge blockchain for real-time, peer-to-peer, cross-border payments and foreign exchange transactions.
“As it enters the MVP stage, Project mBridge is now inviting private sector firms to propose new solutions and use cases that help develop the platform and showcase all its potential.”
The plan to launch the mBridge MVP dates back to September 2023 and was revealed by Hong Kong Monetary Authority CEO Eddie Yue.
At the time, Yue said tests have shown mBridge to provide faster, cheaper, more transparent cross-border payments. However, the BIS had no plans to include private sector firms. He said:
“We are expecting to welcome more fellow central banks to join this open platform. And very soon, we will launch what we call a minimum viable product, with the aim of paving the way for the gradual commercialization of mBridge.”
The mBridge MVP can technically handle real-world transactions and is compatible with the Ethereum Virtual Machine.
Related: BIS announces CBDC, tokenization projects for 2024
A recent BIS report suggested that all central banks globally will soon adopt generative artificial intelligence (AI) tools for cybersecurity. The report found:
“Over two-thirds (71%) of respondents are already using gen AI, and 26% have plans to incorporate such tools into their operations within the next one to two years.”
While generative AI tools have accelerated banks’ response times to cyberattacks and aided in the detection of suspicious trends and anomalies, the most common concern for central banks remains the costs associated with implementing generative AI tools.
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