The global payments system may be entering a new phase. Alongside the traditional dollar–SWIFT network, a new generation of digital settlement systems is emerging. One of the most closely watched is mBridge.
SWIFT mainly carries payment messages BUT mBridge is designed to settle payments.
Instead of relying on multiple correspondent banks and settlement accounts, participating institutions could potentially settle transactions using central-bank digital currencies (CBDCs).
mBridge aims to provide shared digital infrastructure where participating banks can settle transactions using CBDCs directly on the platform.
In its 2022 pilot, 20 banks across China, Hong Kong, Thailand and the UAE executed 164 real-value payment and FX transactions worth more than $22 million.
The key point: mBridge is not simply an alternative to SWIFT’s messaging layer—it targets the settlement layer of cross-border payments itself.
Where Does the Digital Yuan Fit?
China is a founding participant in mBridge, making the e-CNY an important part of the story. Consider a Chinese exporter selling to a UAE buyer. Instead of going through the dollar and several intermediaries, a mature system could potentially enable:
Digital yuan → mBridge → Digital dirham
The interesting possibility is cross-border trade without the dollar necessarily sitting in the middle. The IMF has noted that tokenisation and interoperable digital infrastructure could reduce reliance on the dollar for some cross-border transactions, while stressing that significant development and adoption challenges remain.
Does This Mean De-dollarisation?
Possibly at the margin—but mBridge does not replace the dollar.
It could make local-currency settlement easier. But the dollar’s global role depends on much more than payment infrastructure: deep financial markets, liquidity, Treasury markets and global demand for dollar assets.
mBridge could enable:
Greater use of the renminbi in trade
More local-currency settlement
Faster cross-border payments
Less reliance on correspondent banks
Alternative payment channels
But payment infrastructure and currency dominance are not the same thing.
mBridge could reduce dollar dependence in some transactions without displacing the dollar’s central role in global finance.
The Bigger Strategic Question
The story may not be about China replacing the dollar. It may be about creating more than one route for moving money across borders.
Traditional system
Dollar + correspondent banks + SWIFT
Emerging system
CBDCs + tokenisation + local currencies + digital settlement networks
The future may not be one system replacing another—but multiple systems operating alongside each other. For emerging economies, that could mean more options for diversifying their financial infrastructure.
Is mBridge a BRICS Payment System?
No.
mBridge was not created as a BRICS project. It began as a broader central-bank initiative and was not designed as a sanctions-circumvention system.
Its technology could nevertheless become relevant to the wider BRICS and de-dollarisation debate as countries explore greater use of local currencies and alternative payment infrastructure.
The key distinction is simple: what mBridge was designed to do versus how similar infrastructure might eventually be used.
The Biggest Limitation
mBridge is still an emerging system—not a global replacement for SWIFT or the dollar.
Major hurdles remain: regulation, FX liquidity, governance, cybersecurity, AML/KYC, privacy and trust.
And there is one crucial point:
A payment network can make a currency easier to use. It cannot create demand for that currency.
The Bigger Picture
The real change may be happening underneath the currencies—in the payment infrastructure itself.
For decades:
Dollar → Banks → SWIFT → Global Markets
The emerging model could look more like:
Multiple Currencies → Digital Networks → Multiple Settlement Channels
That could mean more choice—but potentially more fragmentation too.
Bottom Line
mBridge is not about replacing the dollar overnight.
Its importance lies in creating another way to settle cross-border transactions—potentially allowing currencies such as the digital yuan to move internationally without always passing through the dollar.
If mBridge-type networks grow alongside local currencies, regional payment systems and tokenised assets, the global financial system could become more diversified—and potentially more fragmented.
Disclaimer: This report is for informational and research purposes only. It is based on publicly available information and developments that may change. References to mBridge, CBDCs, the digital yuan, BRICS, de-dollarisation and the US dollar are analytical observations, not predictions. Readers should conduct their own research before drawing investment, financial or geopolitical conclusions.