BIS Exits mBridge What Sparked Concerns Over Evasion of International Sanctions

BIS Announces Withdrawal from mBridge, Emphasizes Non-Political Factors
According to foreign media Reuters, the Bank for International Settlements (BIS) recently announced its withdrawal from the digital currency project mBridge, which was jointly developed with the People’s Bank of China and central banks in Hong Kong, Thailand, Saudi Arabia, and the United Arab Emirates. The project aims to simplify cross-border payment processes through Central Bank Digital Currencies (CBDCs). However, a recent report by Bloomberg indicated that the project has raised concerns within the international community about the potential misuse by certain countries to circumvent international sanctions.
BIS President Agustín Carstens confirmed the organization’s withdrawal during a speech on October 31. He emphasized that this decision was not politically motivated but rather because the project has reached sufficient maturity and no longer requires BIS’s participation. He stated, “We have contributed four years to this effort, and now it has matured to a level that our partners can maintain independently.”
Carstens further explained that BIS typically chooses to withdraw once a project achieves operational stability. However, recent political developments have added complexity to BIS’s exit.
Concerns Over International Sanctions Escalate, BIS Draws a Line
Last month, Russian President Vladimir Putin mentioned in a speech that the underlying technology of mBridge could potentially serve as a tool to bypass Western financial sanctions, raising international concerns about the platform’s usage. Although Putin’s remarks did not explicitly indicate intent, they sparked speculation regarding the possibility that BRICS countries might use mBridge to evade U.S. dollar-based international trade restrictions.
As a global organization committed to promoting international monetary and financial cooperation, BIS emphasized that it always adheres to international standards and seeks to distance itself from any actions that might involve violations of sanctions. In response to these speculations, Carstens clarified, “mBridge is not the so-called ‘BRICS bridge,’ nor is it a tool for undermining global sanctions.” He explained that the platform is still in development and aims to simplify payment processes rather than challenge the existing financial system.
He added that although mBridge has reached a level where BIS can withdraw, it is still “years” away from actual operational deployment. He stressed that BIS’s withdrawal does not mean the project’s termination but rather that the project is entering a new phase.
BIS Focuses on “Finternet,” Promoting a New Vision for Digital Finance
Despite ending its participation in mBridge, BIS continues to advance a broader digital finance agenda, including its vision for “Finternet.” This conceptual framework aims to establish an interconnected global financial system that enhances accessibility, reduces transaction costs, and strengthens regulatory consistency.
Carstens described “Finternet” as being built on three pillars: a robust financial architecture, advanced technology, and a solid regulatory foundation. Its goal is to leverage tokenized assets and programmable money to automate and simplify transaction processes, providing a strong infrastructure for an increasingly digitalized financial world.
Additionally, BIS is advancing the “Agorá Project” through its Innovation Hub, which aims to integrate tokenized central bank and commercial bank currencies into a unified ledger to address inefficiencies in cross-border payments. By focusing on interoperability and regulatory coordination, the “Agorá Project” highlights BIS’s belief that while technology is important, sustainable reform of global finance requires alignment between public and private sector goals.
Carstens reaffirmed BIS’s commitment to promoting compliance and security in its projects. He pointed out that BIS will continue to support innovative financial instruments, but the true direction for the future of finance lies in reshaping the system to meet the demands of the digital world, enabling central and commercial banks to collaboratively provide accessible and secure financial solutions.
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