China tests central bank digital currency use to settle trades via ‘bridge’ with partners including Hong Kong, Thailand and UAE

The People’s Bank of China participated in the trial from Aug 15 to Sept 23, testing use of digital currencies on four sides of platform. The trial period handled more than 160 cross-border payments and foreign exchange transactions totalling over 150mil yuan (RM96.86mil). — SCMP

China has completed a 40-day trial using central bank digital currencies to settle trades with Hong Kong, Thailand and the United Arab Emirates via a special “bridge” arrangement, according to a brief report published by the Financial News, the mouthpiece of the Chinese central bank.

The People’s Bank of China (PBOC) participated in the trial from Aug 15 to Sept 23, testing use of digital currencies on the four sides of the mBridge platform, a multi-country payment project initiated by the Hong Kong Monetary Authority, Bank of Thailand, and the Bank for International Settlement (BIS) Innovation Hub Hong Kong Centre, in 2019. The PBOC and the central bank of the United Arab Emirates joined the programme in 2021.