mBridge Project

• mBridge: A multi-CBDC (Central Bank Digital Currency) platform designed to enable cross-border payments.
• Full form: Multiple CBDC Bridge.
• Developed by: Bank for International Settlements (BIS) Innovation Hub, along with the central banks of China, Hong Kong SAR, Thailand and the UAE.
• Technology: Uses Distributed Ledger Technology (DLT).
• Purpose: To make cross-border payments faster, cheaper and more efficient.
• CBDCs: Allows participating central banks and commercial banks to conduct transactions using different domestic CBDCs on a common platform.
• India: India is not one of the founding central-bank participants in Project mBridge.

Prelims Question

Q. With reference to Project mBridge, consider the following statements:

1. It is a multi-CBDC platform for cross-border payments.
2. It uses Distributed Ledger Technology (DLT).
3. It is an initiative of the International Monetary Fund (IMF).

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a) 1 and 2 only

Explanation:

• Statement 1 is correct: mBridge is designed to facilitate cross-border payments using multiple CBDCs.
• Statement 2 is correct: The platform uses DLT to facilitate transactions.
• Statement 3 is incorrect: The project is associated with the BIS Innovation Hub and participating central banks, not the IMF.