BIS announced its withdrawal from mBridge, emphasizing non-political factors
According to the foreign media Reuters, the Bank for International Settlements (BIS) recently announced its withdrawal from the digital currency project mBridge jointly developed with the People’s Bank of China, as well as central banks in Hong Kong, Thailand, Saudi Arabia, and the United Arab Emirates. The project aims to simplify cross-border payment processes through central bank digital currencies (CBDC). However, as reported by Bloomberg recently, the project has raised concerns internationally that some countries may use it to circumvent international sanctions.
BIS President Agustín Carstens confirmed the organization’s withdrawal in a speech on October 31. He emphasized that this decision was not motivated by politics, but rather because the project had reached a sufficient level of maturity and no longer required BIS’s participation. He stated, “We have contributed 4 years to this effort, and now it has matured to the point where our partners can maintain it independently.”
Carstens further explained that BIS typically chooses to withdraw from projects once they achieve operational stability. However, recent political developments have added complexity to BIS’s withdrawal.
International concerns about sanctions heat up, BIS draws the line
Last month, Russian President Putin mentioned in a speech that the underlying technology of mBridge could become a tool to bypass Western financial sanctions, sparking international attention to the platform’s potential uses. Although Putin’s remarks did not explicitly state intent, they led to speculation that BRICS countries might use mBridge to circumvent international trade restrictions based on the US dollar.
As a global organization dedicated to promoting international monetary and financial cooperation, BIS emphasizes its commitment to international standards and seeks to draw a line with any activities that may involve violating sanctions. In response to these speculations, Carstens clarified, “mBridge is not a so-called ‘BRICS bridge’ nor a tool to undermine global sanctions.” He explained that the platform is still in the development stage, aiming to simplify payment processes rather than challenge the existing financial system.
He added that although the development of mBridge has reached a point where BIS can withdraw, it will still take “several years” before it is fully operational. He emphasized that BIS’s withdrawal does not mean the end of the project, but rather that the project is entering a new stage.
BIS focuses on “Finternet,” promoting a new vision of digital finance
Despite ending its participation in mBridge, BIS continues to advance broader digital finance initiatives, including its vision of “Finternet.” This conceptual framework aims to establish an interconnected global financial system to enhance accessibility, reduce transaction costs, and strengthen regulatory consistency.
Carstens described “Finternet” as built on three pillars: a robust financial architecture, advanced technology, and a solid regulatory foundation. Its goal is to utilize tokenized assets and programmable currencies to automate and simplify transaction processes, providing a robust infrastructure for the increasingly digitalized financial world.
Additionally, BIS is advancing the “Agorá project” through its Innovation Hub, aiming to integrate tokenized central bank and commercial bank currencies onto a unified ledger to address inefficiencies in cross-border payments. By focusing on interoperability and regulatory coordination, the “Agorá project” highlights BIS’s belief that while technology is important, sustainable reform of global finance requires alignment of public and private sector goals.
Carstens reiterated BIS’s commitment to promoting compliance and security in its projects. He pointed out that BIS will continue to support innovative financial tools, but the true direction of future finance lies in reshaping the system to meet the needs of the digital world, enabling central and commercial banks to collaborate in providing accessible and secure financial solutions.
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