mBridge Hits $55B in CBDC Transactions: China’s Digital Yuan Challenges U.S. Dollar Dominance
LTB Chinese-Led mBridge Platform Hits $55 Billion in CBDC Transactions, Exposing a Global Financial Fault Line
China’s mBridge platform, a cross-border payment system powered by central bank digital currencies (CBDCs), has smashed past $55 billion in transactions, signaling a seismic shift in global finance. While Bitcoin remains the gold standard for decentralization, this state-driven initiative—backed by China, Saudi Arabia, Thailand, and others—aims to sidestep the U.S. dollar’s stranglehold. Meanwhile, the U.S. under Trump is slamming the door on CBDCs and doubling down on private stablecoins, creating a stark divide in the future of money.
- Massive Growth: mBridge processed $55.5 billion across over 4,000 transactions, a 2,500-fold jump since 2022.
- Digital Yuan Powerhouse: China’s e-CNY dominates with 95% of mBridge volume, hitting over $2 trillion in total transactions by 2025.
- U.S. Pushback: Trump bans federal CBDC involvement, while a $310 billion stablecoin market gets a regulatory green light.
What is mBridge? Inside China’s CBDC Payment Network
Since its launch in 2021, mBridge has emerged as a bold experiment in cross-border payments, a collaboration between the Bank for International Settlements (BIS) Innovation Hub and central banks from China, Saudi Arabia, Thailand, Hong Kong, and the UAE. Unlike Bitcoin, which thrives on a permissionless blockchain where no single entity calls the shots, mBridge leverages CBDCs—digital versions of fiat currencies issued and controlled by governments. The goal? Streamline international settlements, slash costs, and bypass the U.S. dollar-dominated systems that have ruled since the 1940s, when the dollar became the world’s trade currency under the Bretton Woods agreement.
For those new to the game, think of the dollar’s dominance as a global toll road—most international trade flows through systems like SWIFT, a clunky, expensive network often swayed by U.S. political leverage. SWIFT delays can cost businesses days and hefty fees, a pain point mBridge aims to solve. But here’s the rub: while it promises efficiency, it trades away privacy and autonomy for state oversight. With China’s digital yuan (e-CNY) driving 95% of mBridge’s transaction volume, the People’s Bank of China (PBoC) reported over $2 trillion in e-CNY transactions by 2025. That’s not just a number—it’s a declaration of intent to build parallel financial rails that could, over decades, undermine the greenback’s grip.
