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mBridge Trial platform to test transactions worth $272mln

November 18, 2021
banking

Central Bank of the UAE said the platform will test cross-border fund transfers and international trade settlement transfers

The UAE Central Bank (CBUAE) has released a communique on the mBridge Trial Platform, which aims to speed up cross-border fund transfers and international trade settlement transfers using central bank digital currencies.

The project has now identified, and will start to put through, business test cases based on historical transactions to test the recently developed platform, amounting to AED 1 billion ($272 million), the banks said.

The platform is being developed in partnership with the Bank for International Settlements (BIS) Innovation Hub Centre in Hong Kong, the Hong Kong Monetary Authority (HKMA), the Bank of Thailand (BoT), and the Digital Currency Institute of the People’s Bank of China (PBoC).

The CBUAE said 22 project participants from 11 industries identified 15 possible business test cases to assess the mBridge Trial Platform’s ability to enhance real-world cross-border payments.

International trade settlement was prioritised in the identified business test cases given the high volume of trade between the four jurisdictions, amounting to $ 731 billion, the bank said.

Khaled Mohamed Balama, governor of the CBUAE, said: “The mBridge project is a landmark development in the field of central bank digital currencies, and one that we at the CBUAE are determined to jointly explore and develop with BIS and other central banking partners, as we look to deliver better, faster, safer and more cost-effective means of international fund transfers.”

zawya