Bank for International Settlements leaves Chinese CBDC project
Agustín Carstens, General Manager of the Bank for International Settlements (BIS), has confirmed the BIS’s decision to exit Project mBridge.
The cross-border payment system, developed over four years in collaboration with various central banks, aimed to simplify international transactions using wholesale central bank digital currencies (CBDCs).
In a speech on October 31, Carstens said the decision to leave Project mBridge is not due to political factors or any project shortcomings but marks a “graduation” for the BIS.
“We have been involved for four years, and the project has matured to a point where our partners can continue independently,” he noted, adding that the BIS often catalyzes innovation and steps back once initiatives can be sustained by collaborating central banks.
Carstens addressed recent speculation regarding the project’s potential use by BRICS nations as a mechanism to bypass global sanctions. He categorically dismissed these claims, clarifying that mBridge was designed to address broader central banking needs and is far from being operationally mature.
“mBridge is not the ‘BRICS bridge,'” Carstens stated emphatically, underscoring the BIS’s commitment to ensuring compliance with international sanctions in all its initiatives.
Carstens’ remarks offered additional context into the BIS’s forward-looking vision, which centers around a financial future built on the concept of the “Finternet” — an interconnected financial system that enhances accessibility, reduces transaction costs, and fosters integration.
Carstens described the Finternet as resting on three main pillars: a robust economic and financial architecture, advanced technology, and a sound legal and regulatory basis. The BIS aims for the Finternet to simplify and streamline financial transactions, using tokenized assets and programmable money to automate processes, improve compliance, and reduce costs in a rapidly evolving global market.
He also highlighted another major Innovation Hub initiative, Project Agorá, which seeks to integrate tokenized central bank and commercial bank money on unified ledgers to overcome existing barriers in cross-border payments. This effort underscores the BIS’s view that while technology provides critical tools, the true future of finance requires a foundational vision that aligns the private and public sectors in tackling inefficiencies and ensuring security.
For Carstens, the financial system’s future is not just about technological advancements but about reshaping the system’s architecture to meet the demands of a digital-first world, with central banks and commercial banks working in tandem to realize this vision.
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