The Central Bank of the UAE (CBUAE) has successfully launched the Project mBridge Minimum Viable Product platform for early adopters.
The mBridge project is a multi-central bank digital currency (CBDC) common platform for wholesale cross-border payments and settlements. The technology can help connect economies and support international trade and cooperation outside the MENA region. The aim of the project is to facilitate efficient, low-cost, and instant cross-border payments settled in central bank money.
The CBUAE anticipates the growing use of the mBridge platform for cross-border payments among the participating jurisdictions. The CBUAE and other banks across Hong Kong, Thailand and China have launched the Minimum Viable Product (MVP) phase of the project.
CBUAE’s launch of the MVP is part of the Phase 1 implementation of their CBDC strategy. They are preparing for implementation of Phase 2 which will include domestic CBDC payments and enhancements of cross-border fund transfers.
His Highness Sheikh Mansour Bin Zayed Al Nahyan initiated the first cross-border payment of ‘Digital Dirham’ (CBUAE’s CBDB) to China worth AED 50 million via mBridge in January 2024.
Many UAE licensed financial institutions have been onboarded on the platform and those onboarded can initiate and process cross-border CBDC payments.
The platform is a key initiative under the CBUAE’s FIT program which aims to accelerate the digital transformation for the UAE’s financial services sector.