The Bank for International Settlements (BIS) recently announced its decision to end its partnership with Project mBridge, a central bank digital currency (CBDC) initiative involving the People’s Bank of China, and the central banks of Hong Kong, Thailand, Saudi Arabia, and the UAE. The project aimed to simplify cross-border payments through CBDCs but has faced concerns over the potential misuse by certain nations to evade international sanctions.
BIS General Manager Agustín Carstens confirmed the organization’s departure in an address, emphasizing that the decision was not politically motivated. He described the exit as a natural progression for the project, indicating that it had reached a level of maturity where BIS’ involvement was no longer necessary.
Despite recent political complexities surrounding the project, Carstens clarified that Project mBridge was not intended to serve as a tool to circumvent global sanctions or challenge existing financial systems. He explained that the platform was still in its development stages and focused on streamlining payment processes rather than disrupting financial structures.
While BIS has stepped back from Project mBridge, it remains committed to broader digital finance initiatives, including its vision for a “Finternet.” This framework aims to establish a connected global financial system with enhanced accessibility, reduced transaction costs, and improved regulatory alignment.
Carstens outlined the three main pillars of the Finternet: a strong financial architecture, advanced technology, and solid regulatory foundations. The goal is to leverage tokenized assets and programmable money to automate transactions and provide a resilient infrastructure in the digital financial landscape.
Additionally, the BIS is progressing with Project Agorá through its Innovation Hub, which focuses on integrating tokenized central bank and commercial bank money on unified ledgers to address inefficiencies in cross-border payments. By emphasizing interoperability and regulatory coherence, the BIS aims to reshape global finance systems to meet the demands of a digital-first world.
Carstens reiterated the organization’s commitment to compliance and security in its projects, highlighting the importance of aligning public and private sector goals for sustainable financial reform. While supporting innovative financial tools, the BIS believes that the future of finance lies in collaboration between central and commercial banks to deliver secure and accessible financial solutions tailored to the digital era.
