BIS debates ending project to undermine US dollar

Weighty subject: Carstens (centre) during the annual meetings of the IMF and World Bank. He says the BIS cannot operate with countries that are subject to sanctions. — Bloomberg

WASHINGTON: The Bank for International Settlements (BIS) is debating whether to shut down a pilot cross-border payments platform after Russia‘s President Vladimir Putin identified the underlying technology as a tool to circumvent sanctions and potentially undermine the US dollar’s dominance in the global financial system.

The mBridge project – which promises to allow sending money around the world without relying on US banks – was among topics discussed by central banks and finance chiefs at last week’s annual meetings of the International Monetary Fund and World Bank in Washington, according to people informed about the talks.