China-Led Digital Currency Platform Surpasses $55B in Transactions

A China-led cross-border digital currency platform has recorded rapid growth, with total transaction volumes now exceeding $55 billion, reflecting rising interest in alternative payment systems that reduce reliance on the US dollar. The surge highlights a broader global push toward diversified settlement networks amid shifting financial dynamics.

The platform, known as mBridge, is being piloted by the central banks of China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia. Since its early testing phase in 2022, the system has processed more than 4,000 cross-border transactions, representing an estimated 2,500-fold increase in value and underscoring accelerating adoption among participating economies.

At the center of the platform’s activity is the digital yuan (e-CNY), which accounts for nearly 95% of total transaction volume. The e-CNY remains the world’s largest active central bank digital currency initiative, with billions of transactions already completed and total values reaching into the trillions of yuan. Its rapid expansion reflects China’s continued investment in digital financial infrastructure.

Adoption is expected to strengthen further after reports that interest payments will be introduced for e-CNY digital wallets and accounts, a move aimed at encouraging broader usage among users and institutions. This incentive could play a key role in expanding participation across both domestic and cross-border transactions.

Rather than directly replacing the US dollar, the platform is viewed as part of a strategy to build parallel settlement systems that gradually reduce dependence on dollar-based networks. Policymakers worldwide are closely monitoring these developments as digital currencies reshape global finance.

Although the Bank for International Settlements withdrew from the project in late 2024, mBridge has continued to advance. A major milestone was reached when the UAE Ministry of Finance and the Dubai Department of Finance completed the first government transaction using a wholesale digital dirham on the platform, demonstrating real-world functionality.

Looking ahead, mBridge is expected to focus increasingly on trade settlements, particularly in energy and commodity transactions, sectors where China plays a significant global role. As digital currencies gain traction, the platform’s progress may influence how cross-border payments evolve in the years ahead.