China is getting ready for the commercial rollout of a digital currency programme that could reshape cross-border transactions, reduce reliance on the dollar and draw Beijing closer to its “Belt and Road” trading partners.
The Beijing-led platform, known as mBridge, is backed by the central banks of mainland China, Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia. A Hong Kong-based entity will be set up to oversee its operations, people familiar with the matter said.
They did not reveal the exact date of the commercial launch but said preparations were advanced and that fees would be half those of conventional international payment systems. Smaller businesses that found international payment systems, such as Swift, expensive and difficult were expected to use mBridge, they said.