Historic CBDC Transfer to China
The United Arab Emirates (UAE) Central Bank has successfully conducted its inaugural cross-border transaction using a digital version of its currency, the dirham. This transaction, which took place on January 29, utilized the mBridge central bank digital currency (CBDC) platform to transfer 50 million dirhams (approximately 13.6 million dollars) to China.
Sheikh Mansur, Chairman of the UAE Central Bank, revealed that this landmark CBDC transfer was part of the golden jubilee celebrations of the bank’s founding. The mBridge project, a collaborative effort launched in 2021, involves the central monetary authorities of China, Hong Kong, Thailand, and the UAE, alongside the Bank for International Settlement (BIS).
The mBridge platform, which uniquely includes China in its international partnership, completed its pilot phase in September 2022 and was officially launched in September 2023. It integrates multiple commercial banks from the member countries to enhance the underlying infrastructure and technology.
Utilizing a single-platform, direct-access model, the mBridge ledger platform executes real-time, peer-to-peer transactions with the HotStuff+ consensus mechanism, enabling faster transfers of national digital currencies among the participating countries.
Amidst the growing interest in blockchain and cryptocurrencies, governments globally are exploring the potential of national digital currencies issued by central banks. According to a BIS report, around 90% of central banks are considering CBDC projects, with 11 countries having launched, 15 in pilot phases, and 26 in development stages.
