The central banks of the United Arab Emirates, China, Hong Kong and Thailand have launched digital central bank currencies (CBDC) as a result of their cooperation with the giants of the banking industry. 15 usage areas determined.
Built for digital currency testing mBridge UAE, China, Hong Kong and Thailand central banks participating in the project; As a result of the study conducted with participants from the private sector, in cross-border payment transactions encountered high cost, low speed and operational complexity He found that his problems could be fixed with digital central bank money.
In the test study, in which 19 financial institutions, 2 banking unions and 1 stock market participated, China’s of the four leading state banks as well as Goldman Sachs, HSBC, Societe Generale, Standard Chartered and others.
Shortly referred to as mBridge Multiple CBDC Bridge project; was launched in collaboration with these four countries and the Bank for International Settlements (BIS) to measure the capacity of distributed ledger technology (DLT) and evaluate how CBDC can improve the infrastructure of cross-border transactions.
In the brochure shared by Thailand’s central bank, the digital central bank money infrastructure; It was stated that the bonds issued by companies in the form of tokens can be used in 15 areas including cross-border settlement, forex transactions, commercial payments, cross-border e-commerce, supply chain finance.
According to World Bank statistics, international trade transactions between the United Arab Emirates, China, Hong Kong and Thailand 730 billion dollars has volume. Digital central bank money infrastructure is in the works as it can improve these transactions. this area of use has been given priority.
The second phase of the mBridge project, which is based on the Inthanon-LionRock work in 2019, was completed in September of this year. The pilot study is expected to continue through 2022.