China-Led Digital Payment Platform Transactions Surge Past $55 Billion
Beijing, Saturday, 17 January 2026.
Project mBridge transaction volumes have skyrocketed 2,500-fold to over $55 billion since 2022, with the digital yuan driving 95% of activity, signaling a significant shift away from US dollar reliance.
Explosive Growth in Digital Settlements
The sheer scale of this acceleration is evident when analyzing the platform’s trajectory. Since October 2022, when transaction volumes stood at a mere $22 million, the mBridge project has expanded by a factor of approximately 2522.273, reaching a reported total of $55.49 billion as of November [1][2]. This growth is almost entirely fueled by the Chinese currency; the digital yuan, or e-CNY, now accounts for roughly 95% of the platform’s total settlement volume [2][3]. The broader adoption of the e-CNY is further illustrated by data from the People’s Bank of China (PBOC), which reports that the currency has processed over 3.4 billion transactions worth approximately 16.7 trillion yuan ($2.4 trillion), marking an increase of over 800% from 2023 levels [3][4]. In a move likely to incentivize further adoption, Chinese state media have indicated that the e-CNY will begin paying interest to digital wallet holders in 2026 [3].
Divergent Global Strategies
While the mBridge consortium—which includes central banks from Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia—moves forward, the project’s governance structure has undergone a significant shift [1]. The Bank for International Settlements (BIS), based in Switzerland, previously oversaw the initiative but unexpectedly withdrew in late 2024, leaving the participating central banks to manage operations independently [3][4]. This decentralization contrasts sharply with the approach taken by the United States; President Donald Trump has halted federal central bank digital currency (CBDC) efforts, opting instead to support privately issued stablecoins under new national regulations [2]. Meanwhile, Western financial institutions are mobilizing their own alternatives. As of January 14, 2026, a coalition including the New York Federal Reserve, the Bank of Japan, and the Bank of England has intensified testing on a separate cross-border project involving over 40 major commercial banks [3].
Eroding Dollar Dominance
The operational reality of mBridge is transitioning from pilot testing to substantial government-level utility. In November 2025, the UAE Ministry of Finance and the Dubai Department of Finance executed the first government transaction using wholesale digital dirham on the platform, a milestone that underscores the system’s readiness for state settlements [4]. Analysts suggest this utility will likely concentrate on trade settlements, particularly within the energy and commodities sectors where China plays a central commercial role [3]. Alisha Chhangani of the Atlantic Council notes that while mBridge is unlikely to challenge the US dollar’s dominance directly in the immediate term, it possesses the capacity to incrementally erode it across these specific corridors and use cases [1][3].