China is reportedly preparing for the commercial launch of a cross-border payment program focused on digital currency.
The new platform, called “mBridge,” has the support of central banks in China, Hong Kong, Saudi Arabia, Thailand and the United Arab Emirates, the Financial Times (FT) reported. I mentioned Saturday (June 13), citing sources familiar with the matter.
While it is not clear when the system will be launched, the sources said that preparations are in their advanced stages, and that the fees for using the service will be half those of standard international payment systems.
mBridge is expected to attract small businesses that find payment systems such as Swift The sources added that it is very expensive and difficult to use.
The Financial Times noted that this is happening at a time when other regional payment systems are enjoying new momentum, with the likes of European Central Bank Ceiba and Ant group The cross-border QR code network targets faster and cheaper transactions, especially for smaller, real-time payments made by tourists.
“There is an arms race for alternative financial systems going on quietly in the background,” he said. Tom Keatingfounding director of Finance and Security Centre In the United Kingdom Russianciting the White House Embrace stablecoins.
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He added that China wants to use systems like mBridge to provide its services ECNY digital currency A greater role in the world of global finance.
“You could say it’s a belt and road for digital currency, so it’s not surprising that the Chinese are continuing to push it,” Keating said of mBridge.
The “global payments landscape,” once dominated by Swift, is fragmenting into “an ecosystem of competing networks, of which mBridge is set to be one.” Jane Mahead of Chinese research at Institute of International Financesaid FT.
In other cross-border payments news, recent PYMNTS information indicated… MasterCard Research shows that More than half of American small and medium-sized businesses purchased goods and inputs from overseas suppliers. Among companies with annual revenues between $1 million and $10 million, the proportion of global sources reached 73%.
However, the operating model of SMEs has It developed faster He said of the infrastructure that supports payments Mike ChrisExecutive Vice President, Commercial and New Payments Flows, North America at Mastercard.
“What we need to see is cross-border payments becoming as easy as ‘send you money’ in a peer-to-peer payment or as easy as the payment experience in a regular consumer transaction,” he said. “We need to see the same level of fluidity while really focusing on keeping it simple and simple Demystifying On the movement of money across borders.
