Digital yuan expands to 26 banks and advances mBridge cross-border payments

China’s central bank (PBOC) has signed direct participant agreements with 26 financial institutions to expand the digital yuan cross-border payments ecosystem. On June 16, the digital yuan operation center in Shanghai linked participants to the Cross-Border e-CNY Transfer Services (CBETS), a platform supporting 24/7 settlement links with foreign central banks and overseas financial institutions. Standard Chartered Bank (China) is expected to be among the early foreign participants. The PBOC aims to grow digital yuan usage both domestically and internationally, according to sources cited by Reuters. Earlier, Beijing approved 12 banks for digital yuan operations. Separately, reporting by the Financial Times says China is progressing the commercial rollout of mBridge, a digital currency program designed to boost cross-border transactions, reduce reliance on the U.S. dollar, and strengthen China’s ties with “Belt and Road” partners. mBridge is backed by central banks across mainland China, Hong Kong, Thailand, the UAE, and Saudi Arabia, with oversight handled by a Hong Kong-based entity. While the launch date is not disclosed, preparations are reportedly advanced and proposed fees would be about half of conventional international payment systems. mBridge began as an initiative between HKMA and the Bank of Thailand and took its current form in 2021 after BIS and other partners joined. The platform uses blockchain to enable transactions between central banks using their own digital currencies, with commercial banks participating under central-bank supervision. The project has processed roughly RMB 470 billion (about $69 billion).