A new Chinese-led cryptocurrency platform is attracting attention as cross-border transactions have reached $55 billion. The value was reportedly derived from more than 4,000 transactions from central banks in Asian countries such as China, Saudi Arabia and Thailand.
According to a new report from the Washington-based Atlantic Council, trading volumes on new Chinese-led crypto platforms have increased significantly to more than $55 billion. The report explained that prototypes of the mBridge platform are being led by central banks in Asian countries such as Saudi Arabia, China, the United Arab Emirates, and Thailand.
mBridge transaction volume will increase 2,500x from 2022 onwards
of report The central bank said it had completed more than 4,000 transactions through the platform, signaling renewed efforts by countries to develop alternatives to global payment systems that rely on the dollar. The report highlighted that the cumulative transaction value of $55.5 billion represents a 2,500-fold increase since 2022.
The mBridge project was launched in 2021 as a collaboration between the Bank for International Settlements (BIS) Innovation Hub and central banks from Asian countries, including China, Hong Kong, Thailand, and the United Arab Emirates. Digital Yuan (e-CNY) accounts for 95% of the platform’s trading volume and is the world’s largest live central bank digital currency project.
Source: People’s Bank of China. Cumulative trading volume (2021-2025)
According to data According to the People’s Bank of China’s announcement released by the Atlantic Council, e-CNY will process more than $2 trillion in transaction value in 2025, marking the sixth year of positive transaction volume growth since its founding in 2021. This week, the federation, along with 40 other central commercial banks, announced even more rigorous testing of e-CNY.
December 29th, article An article by Lu Lei, deputy governor of the People’s Bank of China, published in Financial News suggested that commercial banks operating e-yuan wallets will start paying interest to digital currency holders based on the amount they hold.
Alisha Changani, associate director of the Atlantic Council’s Center for Geoeconomics, said the role of e-CNY’s development is “not to fully replace the dollar, but to create parallel payment rails that limit reliance on existing dollar-based systems.” He also added that while the project is unlikely to replace the US dollar’s dominance, it could erode the US dollar’s dominance over time.
Donald Trump bans CBDC, supports private stablecoins
On the other side of the world, US President Donald Trump signed A January 23 executive order prohibited federal agencies from issuing or approving central bank digital currencies (CBDCs) due to associated risks to user privacy and financial stability.
President Trump said his administration will take steps to protect Americans from the risks of CBDCs. He also added that the issuance of digital currencies by central banks threatens U.S. sovereignty. Until President Trump took office for his second term in January 2025, CBDC development in the United States was still in its early theoretical stages, with progress largely based on research.
In contrast, Trump has publicly supported privately issued stablecoins and made it clear that institutions are joining the stablecoin movement. his government passed The GENIUS Act, enacted last July, became the first domestic law to regulate stablecoin issuers through Treasury and law enforcement regulations. The law requires issuers of stablecoins to register as financial institutions under the Bank Secrecy Act.
Due to regulatory developments, stablecoins are attracting increasing interest from institutions and large corporations such as banks. Previous report by Cryptopolitan highlighted that the stablecoin market has reached a new peak of $310.117 billion. Tether’s USDT currently dominates the stablecoin sector with a market cap of $186 billion, followed by Circle’s USDC with a market cap of $75 billion, according to CoinGecko.
