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BIS cuts ties with controversial CBDC project mBridge, citing project maturity

Author: Content Editor
The Bank for International Settlements (BIS) has announced its departure from Project mBridge, a central bank digital currency (CBDC) initiative developed in partnership with 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 raised concerns over potential misuse for evading international sanctions. BIS General Manager Agustín Carstens emphasized that the withdrawal was not politically driven but rather a "graduation" for the project as it had reached maturity. Russian President Vladimir Putin's remarks about the project's technology as a potential tool to bypass Western financial sanctions added complexity to the BIS's departure. Carstens clarified that Project mBridge was not intended for bypassing sanctions and was still in its development stage. The BIS continues to pursue broader digital finance initiatives, including its vision for a "Finternet" and Project Agorá to address inefficiencies in cross-border payments. Carstens highlighted the importance of compliance, security, and reshaping financial systems to meet the needs of a digital-first world.

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