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Linking Central Bank Digital Currency (CBDC) payments to 10 ASEAN and 6 Middle Eastern countries attributed to China, raising questions about the authenticity of the news.

China announces linking of digital yuan cross-border payment system to ten ASEAN nations and six Middle Eastern countries.

Unverified claim: Payment systems tied to China's CBDC extend to 10 ASEAN and 6 Middle Eastern...
Unverified claim: Payment systems tied to China's CBDC extend to 10 ASEAN and 6 Middle Eastern nations

Linking Central Bank Digital Currency (CBDC) payments to 10 ASEAN and 6 Middle Eastern countries attributed to China, raising questions about the authenticity of the news.

In a significant move towards internationalizing its digital currency, China has officially connected its Cross-Border Interbank Payment System (CIPS) to ten ASEAN countries and six Middle Eastern jurisdictions. This development marks an expansion of China's digital RMB cross-border payment system.

According to a news report by Proshare, this connection enables direct payments in yuan with real-time or near real-time settlement, significantly reducing transaction time and fees compared to traditional systems like SWIFT. A pilot transfer between Hong Kong and Abu Dhabi was settled within seven seconds with a 98% reduction in fees.

By August 2025, 23 central banks had participated in system tests, and cross-border RMB settlements with ASEAN countries reached 5.8 trillion yuan ($796 billion) in 2024, demonstrating rapid uptake.

This expansion is part of China’s broader strategy to reduce reliance on Western-dominated financial systems and leverage its digital currency infrastructure for greater global financial influence.

However, it's important to note that the widespread adoption of mBridge by Chinese banks is slow and gradual, making the 38% figure extremely theoretical at present. Furthermore, another Chinese language article controversially mentions Iran as a participant in the ASEAN report, but this has not been confirmed by other reliable sources.

mBridge includes Hong Kong, Thailand, the UAE, Saudi Arabia, and several other countries, as well as observers from multiple ASEAN and Middle Eastern nations. At the time of the BIS's withdrawal, there was only one ASEAN mBridge member, Thailand, and four ASEAN observers, giving a total of five ASEAN countries involved, not the ten reported.

It's extremely unlikely that in five months mBridge has gone from one active ASEAN country to ten and from two active Middle Eastern ones to six, suggesting the report is most likely false.

Despite China's involvement in mBridge, it's essential to clarify that mBridge does not belong to China. The Chinese end of any payments using its digital RMB CBDC is merely a part of the system.

In November 2024, the Bank for International Settlements (BIS) stepped away from its mBridge involvement, stating that the project had graduated. However, rumors circulated in 2024 that the BIS was considering withdrawing from mBridge due to the possibility of a sanctioned country's involvement.

For most countries, their optimal foreign exchange rate is against the US dollar, due to a larger number of buyers and sellers for that exchange rate. The cost of choosing a trading currency other than the US dollar falls on merchants, who usually want to save money, so they often choose dollars.

However, if all central banks and commercial banks in each of the connected countries were to adopt mBridge, about 38% of global trade could bypass the US dollar-dominated SWIFT network, implying a potential shift in the global financial landscape.

[1] Source: People's Bank of China [2] Source: China Daily, 1st March 2025

  1. Despite the report stating that ten ASEAN countries are connected to China's Cross-Border Interbank Payment System (CIPS), the actual number seems to be five according to the Bank for International Settlements (BIS).
  2. Adopting mBridge by central and commercial banks in connected countries could potentially bypass the US dollar-dominated SWIFT network, with 38% of global trade being affected.
  3. Insights suggest that China's digital RMB CBDC, through platforms like mBridge, might lead to a significant reduction in reliance on Western-dominated financial systems for global financial influence.
  4. News reports highlight that the use of stablecoins within this digital currency landscape, such as mBridge, could alter the future of international finance and business, fueled by advancements in technology.

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