China's central bank digital currency (CBDC), the digital yuan (e-CNY), has achieved a significant milestone in international settlements. According to data compiled by the Atlantic Council and reported by Reuters, the mBridge platform—a multi-CBDC bridge for cross-border payments—has processed over $55 billion in transactions, with 95% settled in e-CNY. The platform involves the People’s Bank of China, the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the UAE, and the Bank of Saudi Arabia, along with 20 participating commercial banks.
mBridge: Real-Time, Near-Zero Cost Settlements
Project mBridge is designed to bypass traditional systems like SWIFT by using the digital currencies of participating nations for real-time cross-border payments and foreign exchange. Smart contracts handle compliance, fixed exchange rates, and cryptographic security, enabling transactions to settle within seconds at near-zero cost. The Atlantic Council’s report notes that mBridge has handled more than 4,000 transfers, overwhelmingly denominated in digital yuan. Alisha Chhangani of the Atlantic Council told Reuters: “Taken together, these developments point to a gradual expansion of the yuan’s internationalization through digital infrastructure.” She added that while mBridge is unlikely to directly challenge dollar dominance, it may incrementally erode it over time.
Domestic Adoption Accelerates
Beyond cross-border use, the digital yuan is gaining traction domestically. Data from the People’s Bank of China reveals that e-CNY has processed approximately 3.4 billion transactions worth 16.7 trillion yuan ($2.4 trillion) by the end of 2025. After a slow start, adoption is now showing measurable increases in real-world usage. Globally, 136 countries are exploring CBDCs, but only three—the Bahamas (Sand Dollar), Jamaica (JAM-DEX), and Nigeria (eNaira)—have fully launched retail CBDCs. Venezuela’s PETRO is not classified as a genuine CBDC due to its lack of central bank issuance on a sovereign ledger.
A Gradual Shift in Global Payments Infrastructure
The e-CNY’s growing transaction volume, institutional backing, and expanding international rails via mBridge represent a deliberate recalibration of how global payments infrastructure may evolve. While the digital yuan is not poised to overturn the dollar-based system, its steady progress—combined with 136 other nations’ CBDC initiatives—signals a slow but meaningful shift toward alternative settlement channels. The mBridge platform, in particular, demonstrates how digital currencies can reduce reliance on traditional intermediaries and lower costs, potentially reshaping the future of cross-border finance.