The digital yuan is challenging the US dollar’s dominance of $7 trillion in daily currency flows and is surging ahead thanks to the blockchain-based mBridge project.
The digital prototype, supported by Beijing, for global money transfers without relying on US banks is progressing rapidly. Some European and American experts now see it as a potential rival to dollar-dominated payments in the world of finance.
The mBridge project, being developed by China, Thailand, Hong Kong, and the UAE, is expected to have a minimum viable product by the end of the year. It is a collaborative effort with the Bank for International Settlements in Basel.
If mBridge is adopted and implemented, it will allow commercial lenders in one country to have access to currency issued by the central bank of another country instead of having to go to intermediaries or correspondent banks.
