The Bank for International Settlements is urging nations to join China’s CBDC project and align themselves with the BRICS mission to ditch the US Dollar. The BIS bridge project is backed by Chinese, Asian, and Arabic central banks. According to a press release, the project is now open for commercial banks to join and perform real transactions. “Private companies are also invited to participate and propose enhancements,” the release adds.
“Various aspects of the platform will continue to be enhanced, and the participation of both the public and private sectors will be further widened,” the Hong Kong Monetary Authority said in their own release. The Hong Kong central banking institution also announced a new BRICS nation tagging into the project. “Against this backdrop, the HKMA, alongside the project team, welcomes the Saudi Central Bank as the next full participant of the mBridge MVP platform.”
The new CBDC platform could challenge the US dollar’s dominance of payment systems, further boosting BRICS’ de-dollarization mission. The BRICS Bloc consists of Brazil, Russia, India, China, and South Africa. Newly minted nations Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joined the bloc hoping to end global reliance on the greenback. This project can become a significant step towards that goal if more BRICS nations join as well.
Also Read: BRICS: Russia is Now the 4th Largest Economy in The World
Over the past year, the BRICS economic alliance integrated initiatives that were vital to its overall growth. Alongside the adoption of prevalent De-dollarization plans, the alliance has also expanded for the first time since 2001. Subsequently, those two things aligned in what could be a landmark for digital assets and the economic alliance.
Currently, China’s CBDC project houses now more than 26 observing members.