The Bank for International Settlements (BIS) recently announced its departure from Project mBridge, a central bank digital currency (CBDC) initiative aimed at simplifying cross-border payments. 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 raised concerns over potential misuse by certain nations to evade international sanctions. BIS General Manager Agustín Carstens confirmed the organization’s withdrawal, emphasizing that the decision was not politically driven. He described the exit as a “graduation” for the project, stating that it had reached a level of maturity where BIS’ involvement was no longer essential.
While the project had evolved to a point where the BIS could step back, recent political developments have added complexity to the organization’s departure. Concerns were raised when Russian President Vladimir Putin mentioned the underlying technology of Project mBridge as a potential tool to circumvent Western financial sanctions. This led to speculation that mBridge could serve as a pathway for BRICS nations to bypass dollar-based restrictions in international trade. To address these concerns, Carstens clarified that mBridge was not designed as a “BRICS bridge” or a tool to undermine global sanctions. He explained that the platform was developed to streamline payment processes rather than challenge existing financial structures.
Despite exiting Project mBridge, the BIS remains committed to broader digital finance initiatives, including its vision for a “Finternet.” This conceptual framework aims to create an interconnected global financial system with improved accessibility, reduced transaction costs, and increased regulatory alignment. The Finternet is based on three main pillars: robust financial architecture, advanced technology, and solid regulatory foundations. The goal is to use tokenized assets and programmable money to automate and streamline transactions, providing a resilient infrastructure in an increasingly digital financial world.
Additionally, the BIS is advancing Project Agorá through its Innovation Hub, which aims to integrate tokenized central bank and commercial bank money on unified ledgers to address inefficiencies in cross-border payments. By focusing on interoperability and regulatory cohesion, Project Agorá highlights the BIS’ belief that sustainable reform in global finance requires a foundational structure aligning public and private sector goals. Carstens reiterated the BIS’ commitment to compliance and security in its projects, noting that the future of finance involves reshaping systems to meet the needs of a digital-first world where central and commercial banks collaborate to provide accessible and secure financial solutions.
