Hong Kong Monetary Authority’s project mBridge achieves MVP milestone

Project mBridge has reached the critical MVP stage.

The Hong Kong Monetary Authority (HKMA), together with the mBridge project team, announced that Project mBridge has achieved the Minimum Viable Product (MVP) stage. According to the Hong Kong Monetary Authority, the initiative aims to explore the application of central bank digital currency (CBDC) to ease cross-border payment issues.

Focus on cross-border payments

Project mBridge will leverage insights gained from the pilot in 2022 to further develop the prototype platform. Enhancements span the areas of technology, law and governance, and include validation nodes deployed by each jurisdiction’s founding central banking institution. Additionally, the BIS Innovation Hub has formalized a fit-for-purpose governance framework and a comprehensive legal framework tailored to the decentralized nature of the platform. Participating commercial banks have already conducted real value transactions in preparation for the launch of the MVP platform.

Expand participation

As the project progresses, the platform will be further strengthened and public and private sector participation will expand. Notably, the Saudi Central Bank has joined the mBridge MVP platform as the next official participant. The platform’s high compatibility allows it to serve as a testbed for additional technology solutions, new use cases, and interoperability with other platforms. Private sector companies are invited to propose solutions and use cases through an engagement form provided by the BIS Innovation Hub.

Statement from HKMA Leadership

HKMA Chief Executive Officer Eddie Yue emphasized the importance of collaborative efforts between the central banking community and the private sector in advancing the cross-border payments environment. He said, “HKMA is very excited to be actively participating in the BIS Innovation Hub’s exploration of the most advanced multi-CBDC and to contribute to mBridge’s advancement to the MVP stage. We cordially invite other central bank colleagues to join us on this mBridge journey, whether as users experiencing the benefits of the platform first-hand or as co-developers working together to advance cross-border payments.”

future prospects

The mBridge MVP platform is poised to continually evolve, incorporating new technology solutions and use cases to ensure relevance and efficiency for cross-border payments. More information about Project mBridge can be found on the BIS website.

Image source: Shutterstock

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