The mBridge project for cross border CBDC payments is planning to go into production next year. Payments will use wholesale central bank digital currencies (CBDC) from Thailand, Hong Kong, China and the UAE. It could be a major threat to SWIFT in the future. Each country has a particular role, and China’s is around technology. Yesterday the Chinese press reported that mBridge’s blockchain consensus protocol was replaced with a new homegrown one.
Last year’s mBridge report clarified that the blockchain is a bespoke one, but it builds on several known pieces of technology. For example, it uses Ethereum’s Solidity smart contract language and the Ethereum Virtual Machine. When the report was published it said it used the well known consensus protocol HotStuff+. However, it stated in the future it might consider a new consensus mechanism, Dashing.
According to the Chinese press, the Dashing Protocol designed for permissioned blockchains has now been deployed on mBridge to improve efficiency. It’s claimed that in a 91 node test, the performance is improved tenfold. Apparently the results were provided to the Swedish and French central banks who are observers of the mBridge project. Apart from mBridge, Dashing is used on the central bank’s blockchain trade finance network
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