China is accelerating its efforts to challenge the US dollar's dominance in global finance by developing a new platform that enables cross-border payments with the digital Yuan and other central bank digital currencies (CBDCs).
China Is Looking For An Alternative Way To The Dollar With mBridge
The platform, called mBridge, is a blockchain-based system that allows users to send and receive digital currencies without intermediaries such as US banks or payment processors.
mBridge is supported by the Digital Currency Research Institute of the People's Bank of China (PBOC), the central bank that has led the world in launching a CBDC.
mBridge aims to facilitate faster, cheaper and more secure transactions between different CBDCs as well as other digital assets.
The platform uses smart contracts to automate the exchange of currencies and ensure compliance with money laundering and counter-terrorism financing regulations.
mBridge also supports offline payments, which can be useful in areas with poor internet connection or in an emergency.
mBridge has attracted the attention of many central banks and financial institutions around the world who want to explore the potential of CBDCs and move their reserves away from the dollar.
According to a recent report by the Bank for International Settlements (BIS), more than 80% of central banks are actively researching or developing CBDCs.
*Not investment advice.
