BIS distances from Project mBridge amid BRICS sanctions concerns
The Bank for International Settlements (BIS) has announced its exit from Project mBridge, a wholesale central bank digital currency (CBDC) initiative developed in partnership with various monetary authorities. Although the project, which has been in development since 2021, remains years away from operational status, BIS general manager Augustin Carstens emphasized at a conference that Project mBridge is not intended to circumvent sanctions, countering media speculation linking it to BRICS initiatives. Founding members include central banks from China, Hong Kong, Thailand, and the UAE, with additional countries like Saudi Arabia now involved. Despite facing sanctions, Carstens clarified that BIS does not collaborate with countries under sanctions. The appeal of Project mBridge lies in its potential to bypass traditional correspondent banking systems, though BIS is also promoting another project, Agora, which operates with conventional systems and does not include BRICS nations as participants.
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