Hong Kong Monetary Authority's Project mBridge Achieves MVP Milestone
Zach Anderson Jun 05, 2024 11:37
Project mBridge reaches MVP stage, exploring CBDCs for cross-border payments.
Project mBridge Reaches Crucial MVP Stage
The Hong Kong Monetary Authority (HKMA) alongside the mBridge project team has announced the achievement of the Minimum Viable Product (MVP) stage for Project mBridge. This initiative aims to explore the application of central bank digital currencies (CBDCs) to alleviate issues in cross-border payments, according to the Hong Kong Monetary Authority.
Focus on Cross-Border Payments
Project mBridge leverages insights from its 2022 pilot to further develop the prototype platform. Enhancements span technology, legal, and governance areas, with validation nodes deployed by the founding central banking institutions in their respective jurisdictions. Additionally, the BIS Innovation Hub has formulated a fit-for-purpose governance framework and a comprehensive legal framework to match the platform’s decentralized nature. Participating commercial banks have already conducted real-value transactions on the MVP platform in preparation for its release.
Expanding Participation
As the project progresses, the platform will undergo further enhancements, and participation from both public and private sectors will be broadened. Notably, the Saudi Central Bank has joined as the next full participant in the mBridge MVP platform. The platform's high compatibility allows it to serve as a testbed for add-on technology solutions, new use cases, and interoperability with other platforms. Private sector firms are invited to propose solutions and use cases through the participation form provided by the BIS Innovation Hub.
Statements from HKMA Leadership
Mr. Eddie Yue, Chief Executive of the HKMA, emphasized the significance of the collaborative efforts between the central banking community and the private sector in advancing the cross-border payment landscape. He stated, “The HKMA is very pleased to be an active member of this most advanced multi-CBDC exploration of the BIS Innovation Hub and to have contributed to the progression of mBridge to the MVP stage. We cordially invite other central banks peers to join us on this mBridge journey, whether as users to experience the benefits of the platform firsthand, or as co-developers to enhance cross-border payments together.”
Future Prospects
The mBridge MVP platform is poised to continue evolving, with the potential to integrate new technology solutions and use cases, ensuring its relevance and efficiency in cross-border payments. More information about Project mBridge can be found on the BIS website.
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