mBridge and the Yuan's Push to Dominate Global Payments

Monday, 25 November 2024, 04:26

mBridge is pivotal as the yuan seeks to boost its share in global payments, challenging the US dollar's dominance. As experts highlight the yuan's increasing international appeal, Hong Kong's role as a financial hub becomes vital for cross-border transactions. The yuan's integration within RCEP could further empower its global presence.

Scmp — mBridge and the Yuan's Push to Dominate Global Payments

mBridge: Key to Yuan's Global Rise

Beijing aims to enhance the yuan's international use through initiatives like mBridge, a cross-border payments solution designed to substitute traditional systems. As the yuan’s share in global transactions is forecasted to rise steadily to 17% by 2035, the input from former officials like Huang Qifan emphasizes the importance of Hong Kong as a central platform for the yuan, particularly in capturing markets within the RCEP region.

Harnessing Yuan's Potential with mBridge

mBridge represents a coalition of regional central banks working to promote the yuan.
Hong Kong leverages its substantial liquidity pool to foster yuan-denominated financial products.
Antony Leung Kam-chung advocates for Hong Kong's offshore asset management capabilities to boost yuan usage.

Yuan’s Trajectory within the Global Economy

Despite recent fluctuations, the yuan's share in global payments reached a high of 4.74% and remains a contender within the top five currencies for international transactions. Huang Qifan highlights the need for enhancing yuan settlement services to capitalize on emerging sectors like cross-border e-commerce. The commitment to inter-nationalizing the yuan amidst current economic challenges showcases its potential to stabilize global trade pathways.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.