In the past, cross-border cooperation among economies often adhered to the "no harm" principle, meaning the issuance of a central bank digital currency by one country must not interfere with another's monetary sovereignty or affect the execution of its monetary policy. Mu Changchun believes the "no harm" concept should be further extended and enriched.
What role will central bank digital currency (CBDC) play in cross-border payments?
On June 24, Mu Changchun, Director of the Digital Currency Research Institute of the People's Bank of China, delivered a speech titled "CBDC Reshapes Cross-Border Payments" at the 2026 Summer Davos Forum, outlining the development approach for CBDC in supporting cross-border payments.
Mu Changchun stated that new variables have emerged in the international monetary system, with the rapid development of CBDC, stablecoins, and various cryptocurrencies, and the global cross-border payment system is entering a new stage of development. However, the industry is showing signs of fragmentation. This has invisibly raised the compliance, technological, and integration costs of cross-border payments, to some extent constraining the healthy development of global cross-border trade.
The "no harm" principle should not only apply to the macro level of sovereignty and policy but should also extend to the micro level of industry development. This means not increasing commercial banks' investments, avoiding redundant infrastructure construction, and not overturning the existing mature financial system, thereby achieving no harm to the industry ecosystem and market participants.
Currently, the Digital Currency Research Institute operates two cross-border payment infrastructures.
The first is the multi-CBDC bridge (mBridge) jointly built by the People's Bank of China with the Hong Kong Monetary Authority, the Monetary Authority of Macao, the Central Bank of the United Arab Emirates, and the Bank of Thailand.
mBridge connects the payment systems and legal digital currency systems of various economies, enabling multi-currency, real-time, direct cross-border payments and currency exchange. In principle, economies regardless of whether they have initiated a legal digital currency process can connect.
Mu Changchun said that once a central bank from a country or region joins, commercial banks from that jurisdiction can, upon approval from their central bank, connect to the bridge and conduct peer-to-peer transactions with banks from other participating parties. This can significantly shorten cross-border payment pathways, markedly improving efficiency and reducing costs.
According to Mu Changchun, since mBridge successfully entered the phase of continuous real transaction operations in June 2024, it has attracted 49 commercial banks to participate in business, including 21 foreign banks from overseas. By the end of 2025, the platform's cumulative transaction volume had reached nearly 500 billion yuan.
The second infrastructure is the Cross-Border E-CNY Transaction System (CBETS).
In 2025, the People's Bank of China announced the establishment of the Shanghai International e-CNY Operation Center, responsible for the construction and operation of e-CNY cross-border infrastructure, serving the cross-border and offshore system development.
In 2026, with adjustments to the e-CNY measurement framework and an overall upgrade of the infrastructure system architecture, the three major business platforms under the International e-CNY Operation Center—the e-CNY cross-border digital payment platform, the blockchain service platform, and the digital asset platform—were upgraded to CBETS and began branded operations.
Mu Changchun stated that CBETS has three prominent advantages. First, it offers lower access costs and higher settlement efficiency. It organically integrates retail and wholesale, on-chain and off-chain payment, clearing, and settlement services, significantly simplifying business processes and optimizing the service experience.
Second, its system services are standardized and compatible. It is compatible with both centralized systems and blockchain systems in terms of technical pathways. In terms of message standards, it is compatible with ISO 20022, facilitating integration with commercial banks' internal systems. It covers business such as trade finance information transmission and payments both off-chain and on-chain.
Third, its participation arrangements are highly inclusive, and business scenarios are extensible. Eligible commercial banks, financial infrastructures, and payment service providers can all apply for access.
Mu Changchun said that CBETS can handle business for cross-border e-CNY consumption scenarios like QR code payments and "tap-to-pay," as well as businesses like remittances, trade, and investment and financing settlements. It can also support digital innovation businesses for financial institutions.
Overall, the three major business platforms of CBETS jointly build a complete cross-border payment service system that covers both off-chain and on-chain, caters to both retail and wholesale, and supports both trade and finance.
Currently, CBETS supports overseas participants in accessing multiple services conveniently through a single Hong Kong access point, providing direct access to 24/7 intelligent digital payment services. On June 16, the International e-CNY Operation Center signed CBETS participant service agreements with the first batch of 26 domestic and international banks.
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