The cross-border interoperability of digital currencies has reached a significant milestone. The Monetary Authority of Macau recently announced at a high-level seminar on central bank digital currency (CBDC) development and cross-border innovation that Macau has completed system integration with the multi-CBDC bridge project (mBridge), establishing an efficient, secure, and low-cost channel for cross-border fund payments and settlements. The system was officially opened for local banks to conduct transactions on June 2.
The mBridge project is jointly led by the People's Bank of China, the Hong Kong Monetary Authority, the Bank of Thailand, and the Central Bank of the United Arab Emirates, coordinated by the Bank for International Settlements Innovation Hub. It is a "cross-border payment highway" system enabling CBDC interoperability based on blockchain and distributed ledger technology. Completing cross-border payment settlements directly on-chain using CBDCs can significantly improve the speed of fund transfers and reduce cross-border transaction costs compared to traditional methods.
In June 2024, mBridge entered its minimum viable product phase, allowing participating institutions to commence real transactions in an orderly manner based on practical needs. Subsequently, the Saudi Central Bank officially joined the project. Notably, the People's Bank of China has established the CBETS bilateral cross-border settlement service platform, supporting overseas institutions' "single-point access" and enabling 24/7 straight-through processing for on-chain and off-chain settlements.
With Macau's formal integration, the multilateral digital currency bridge now has six official members. Chief Analyst Wang Pengbo of Boaton Consulting commented that the mBridge project is seeing steady growth in participating members and a stabilizing technical architecture. Its feasibility has been validated, particularly in cross-border trade settlement and financial interbank scenarios. However, widespread adoption still requires addressing systemic issues such as regulatory coordination, liquidity management, and legal framework adaptation.
Why Macau? "In an era where digital innovation continuously drives the evolution of monetary systems and the transformation of payment landscapes, leveraging legal digital currencies to bring about a new generation of digital and intelligent payment upgrades, making the connections of capital, trade, and rules more efficient and secure, is a shared concern for China and Portuguese-speaking countries," stated Lu Lei, Deputy Governor of the People's Bank of China. "The unique value of Macau as a platform for China-Portugal cooperation is highly valued. Macau's joining of mBridge and its active advancement of the digital Macau pataca sandbox testing are anticipated to connect the digital Macau pataca system with CBETS, enabling China and Portuguese-speaking countries to move forward together on the new course of digital finance, establishing closer cooperation and broader connections, and providing more transparent, secure, efficient, and low-cost monetary and payment connectivity channels for economic and trade exchanges."
In Wang Pengbo's view, Macau's participation can enhance cross-border payment efficiency and reduce transaction costs on one hand, while on the other, it can drive the local banking system to align with international standards and regulatory compliance in terms of technical standards, processes, and infrastructure, providing foundational support for future digital financial ecosystem development. Leveraging its role as a China-Portugal platform, Macau can become a "testing ground" and "router" for cross-border digital renminbi payments between China and Portuguese-speaking countries, potentially forming a unique "Macau model."
According to the Monetary Authority of Macau, 11 local banks have become the first batch of participating institutions in the mBridge project. These are: Agricultural Bank of China Macau Branch, Bank of China Macau Branch, China Construction Bank Macau Branch, Banco de Desenvolvimento de Macau, China Guangfa Bank Macau Branch, ICBC (Macau), Luso International Banking Ltd., Tai Fung Bank Ltd., Luso International Banking Ltd., Bank of Communications Macau Branch, and Chong Hing Bank Macau Branch.
It is noted that participating institutions are rapidly advancing the mBridge project in Macau from system integration to real transaction scenarios. For instance, PetroChina, in cooperation with Bank of China, successfully executed Macau's first "currency bridge" cross-border transaction to the UAE, opening a new channel for the renminbi to directly enter the Middle Eastern market. ICBC (Macau) announced it will soon facilitate a Hong Kong dollar cross-border remittance transaction on the mBridge platform in conjunction with China State Construction Engineering (Macau) Co., Ltd. and ICBC Asia. Banco de Desenvolvimento de Macau will facilitate two-way renminbi and Hong Kong dollar cross-border remittance transactions on the mBridge platform in cooperation with Shenzhen Etern Supply Chain Co., Ltd.
Looking ahead, Wang Pengbo anticipates that high-frequency, low-value scenarios such as cross-border trade settlement, tourism consumption payments, and financing for small and medium-sized enterprises will be the first to implement real transactions, forming a replicable model for regional cooperation.
Senior Researcher Su Xiaorui of Suxi Zhiyan believes that, based on Macau's new position as an "international financial hub in the digital era," it is expected to deepen implementation in two areas. First, in the B2B sector, it could empower cross-border trade settlement and bulk commodity payments, creating a more efficient and secure new international trade payment system. Second, on the consumer side, it could accelerate the integration of the "digital Macau pataca" with mainland China's digital renminbi applications, advancing payment integration for people's livelihoods within the Greater Bay Area while fostering a "city-like" living circle.
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