The mBridge project – a prototype of multiple Central Bank Digital Currencies (mCBDCs) developed by the Bank for International Settlements (BIS) Innovation Hub and the four central banks of Hong Kong, Thailand, China and the UAE – has demonstrated the potential of using digital currencies and distributed ledger technology (DLT) for delivering real-time, cheaper and safer cross-border payments and settlements.
The common prototype platform for mCBDC was able to complete international transfers and foreign exchange operations in seconds instead of the several days normally required for any transaction to be completed using the existing network of commercial banks. The platform also has the advantage of operating on a 24/7 basis. The cost of such operations to users can also be reduced by up to half, according to the BIS report.