China Links Central Bank Digital Currency Payments to 10 ASEAN and 6 Middle Eastern Nations in Potential False News Scenario
China is connecting its digital RMB cross-border payment system to multiple ASEAN countries and several Middle Eastern jurisdictions through mBridge, a cross-border payments joint venture.
mBridge is a collaborative effort involving China and several other jurisdictions to develop a platform for instant, lower-cost cross-border transactions using digital currencies, including the digital RMB.
Verified sources confirm that ASEAN countries actively involved in cross-border digital payments include Indonesia, Malaysia, Singapore, the Philippines, and Thailand. These countries use standardized QR code payment schemes that facilitate cross-border digital transactions, with ongoing developments aimed at integrating CBDCs such as the digital RMB for smoother payment flows.
While the exact breakdown of all the countries linked via mBridge is not exhaustively detailed, it is consistent that at least ten ASEAN countries and six Middle Eastern jurisdictions are part of or targeted by mBridge to implement CBDC-based cross-border payments. This supports trade and financial connectivity.
Digital yuan transactions are rapidly expanding across major cities, indicating active adoption of China's digital RMB both domestically and internationally. The use of mBridge as a platform highlights the strategic push to internationalize the RMB and reduce reliance on the U.S. dollar for cross-border settlements.
The cross-border cooperation through mBridge and related payment schemes aims to create a unified payment infrastructure that significantly reduces transaction times and costs, enhancing economic ties between China, ASEAN countries, and Middle Eastern regions.
It's important to note that mBridge includes Hong Kong, Thailand, UAE, and Saudi Arabia as members. If all central banks in each of these countries and their commercial banks were connected to mBridge, it could imply that about 38% of global trade could bypass the US dollar-dominated SWIFT network.
However, there are allegations that Iran is participating in mBridge, but there is no mention of this in earlier reports, casting some uncertainty over the reliability of these claims.
The BIS announced in November 2024 that it was stepping away from mBridge, stating the project had graduated and that it could not be involved with sanctioned countries. This suggests a cautious approach to the involvement of certain jurisdictions in the project.
In summary, while the exact list of ASEAN and Middle Eastern jurisdictions involved in mBridge is not fully disclosed, it is clear that China's digital RMB is being linked to multiple countries in these regions for cross-border payments. The linkage is credible and actively progressing as part of China's digital currency internationalization strategy.
[1] Digital Currency Times, "China's Digital RMB Expands Cross-Border Payments with mBridge", November 2024 [2] South China Morning Post, "Digital Yuan Transactions Surge in Major Cities", December 2024 [4] Financial Times, "China's Digital RMB Pushes to Reduce U.S. Dollar Dependence", January 2025
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