The Bank for International Settlements (BIS) has officially announced its decision to step away from Project mBridge, a collaborative cross-border payment system it co-developed with several central banks over the past four years. This strategic exit, detailed by BIS General Manager Agustín Carstens in a speech on October 31, marks a new chapter in the institution’s ongoing mission to innovate and streamline the global financial landscape.
Carstens was quick to clarify that the BIS’s withdrawal from Project mBridge is not due to political considerations or deficiencies within the project itself. Instead, he emphasised that mBridge has reached a level of maturity where partner central banks can continue its development independently. Carstens also noted that BIS’s Innovation Hub frequently acts as a springboard for cutting-edge initiatives, only to step back once they reach self-sustainability.
Project mBridge, which leverages wholesale central bank digital currencies (CBDCs) to simplify international transactions, has faced speculation over its potential role as a tool for BRICS nations to bypass global sanctions. Carstens firmly dispelled such rumours, stating unequivocally. He underscored that the platform was designed to support the broader objectives of central banking and remains operationally limited. Compliance with international sanctions, Carstens emphasised, remains a central tenet in all BIS-led initiatives.
Looking to the future, Carstens outlined the BIS’s commitment to building a more interconnected, efficient global financial system, which he termed the “Finternet.” This future-oriented vision aims to enhance accessibility, lower transaction costs, and foster deeper financial integration through the convergence of advanced technology, sound regulatory frameworks, and a resilient economic infrastructure. Central to the Finternet concept is the use of tokenized assets and programmable money to improve compliance, reduce costs, and automate financial processes.
In addition to Project mBridge, BIS is advancing Project Agorá, another Innovation Hub initiative with transformative potential. Project Agorá aims to bring together tokenised assets from central and commercial banks on unified ledgers, bridging long-standing gaps in cross-border payments. By integrating these digital assets, the BIS envisions a future where financial institutions can work seamlessly across borders and systems, streamlining the flow of capital on a global scale.
Carstens stressed that while digital advancements are reshaping the financial system, the true vision for the future lies in building a holistic, digital-first architecture that harmonises both private and public sector interests. For the BIS, this means creating a secure, compliant, and efficient system that transcends individual technologies and delivers a more robust, interconnected financial ecosystem.
As BIS hands over Project mBridge, its focus on building a digitally integrated financial future remains unwavering, setting the stage for continued innovation and collaboration within the global banking sector.
