BIS Announces Withdrawal from mBridge, Emphasizing Non-Political Factors
According to the foreign media Reuters, the Bank for International Settlements (BIS) recently announced its withdrawal from the digital currency project mBridge developed jointly with central banks such as the People’s Bank of China, Hong Kong, Thailand, Saudi Arabia, and the United Arab Emirates. The project aims to simplify cross-border payment processes through central bank digital currencies (CBDC). However, as reported by Bloomberg recently, the project has raised concerns in the international community about the possibility of some countries using it to circumvent international sanctions.
BIS President Agustín Carstens confirmed the organization’s withdrawal in a speech on October 31. He emphasized that this decision was not driven by political motives but because the project has reached a sufficient level of maturity and no longer requires BIS’s involvement. He stated, “We have contributed four years to this effort, and now it has matured to a point where our partners can sustain it independently.”
Carstens further explained that BIS typically chooses to withdraw from projects once they reach operational stability. However, recent political developments have added complexity to BIS’s withdrawal.
International Sanctions Concerns Escalate, BIS Draws the Line
Last month, Russian President Vladimir Putin mentioned in a speech that the underlying technology of mBridge could be used as a tool to bypass Western financial sanctions, sparking international concerns about the platform’s potential uses. Although Putin’s remarks did not explicitly state intent, they led to speculation that BRICS countries could use mBridge to circumvent international trade restrictions based on the US dollar.
As a global organization dedicated to promoting international monetary and financial cooperation, BIS emphasizes its commitment to international standards and seeks to draw the line on any potential involvement in sanction violations. Addressing these speculations, Carstens clarified, “mBridge is not the so-called ‘BRICS bridge’ nor a tool to undermine global sanctions.” He explained that the platform is still in the development stage, aiming to simplify payment processes rather than challenge the existing financial system.
He added that despite mBridge’s development reaching a point where BIS can withdraw, it will still take “years” before it is ready for actual operation. He emphasized that BIS’s withdrawal does not mean the end of the project but rather signifies a new phase for it.
BIS Focusing on “Finternet,” Promoting a New Vision for Digital Finance
Despite ending its participation in mBridge, BIS continues to advance broader digital finance initiatives, including its vision for “Finternet.” This conceptual framework aims to establish a connected global financial system, improve accessibility, reduce transaction costs, and enhance regulatory consistency.
Carstens described “Finternet” as built on three pillars: a robust financial infrastructure, advanced technology, and a solid regulatory foundation. Its goal is to leverage tokenized assets and programmable currencies, automate and simplify transaction processes, and provide a robust infrastructure for an increasingly digital financial world.
Furthermore, BIS is advancing the “Agorá project” through its Innovation Hub, aiming to integrate tokenized central bank and commercial bank currencies onto a unified ledger to address inefficiencies in cross-border payments. By focusing on interoperability and regulatory coordination, the “Agorá project” highlights BIS’s belief that while technology is essential, sustainable reform of global finance requires alignment of public and private sector objectives.
Carstens reiterated BIS’s commitment to promoting compliance and security in its projects. He pointed out that BIS will continue to support innovative financial tools, but the true direction of future finance lies in reshaping systems to meet the needs of a digital world, enabling central and commercial banks to collaborate in providing accessible and secure financial solutions.
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