Tag: SWIFT

mBridge Is Set To Replace The U.S.-Dollar Denominated World Financial System, Dominated By SWIFT and The Petrodollar

mBridge is a cross-border payment platform, based on a custom-built blockchain called the mBridge Ledger, that use multiple central bank digital currencies (multi-CBDC), which are faster, cheaper, and more efficient international settlements than traditional systems like SWIFT. (mBridge PDF full text, 6,336kb, 50 pages, October 22, 2025). mBridge reached the minimum viable product (MVP) stage in June 2024. In October 2024, the Bank of International Settlements (BIS), which was overseeing the research and development of the project, announced that it was handing over the project’s governance to the central bank partners, which some observers suggest might indicate a potential shift towards a more China-led development. Taking seconds instead of days, the more effective and the more efficient mBridge is set to replace the traditional U.S. dollar denominated world financial systems, dominated by SWIFT and the Petrodollar.

Key Details

  • Goal: To tackle the high costs, low speed, and operational complexities associated with traditional correspondent banking for international trade. Transactions on mBridge can reportedly settle in seconds, compared to days for conventional methods.
  • Technology: The platform uses a purpose-developed, permissioned distributed ledger technology (DLT) and is compatible with the Ethereum Virtual Machine (EVM), allowing for smart contracts and add-on technology solutions.
  • Participants:
    • Founding Central Banks: The Hong Kong Monetary Authority (HKMA), the Bank of Thailand, the Central Bank of the United Arab Emirates (CBUAE), and the Digital Currency Research Institute of the People’s Bank of China.
    • New Member: The Saudi Central Bank joined as a full participant in June 2024.
    • Former Overseer: The Bank for International Settlements (BIS) Innovation Hub was a key developer but handed the project over to the central bank partners in October 2024 due to geopolitical considerations and the project reaching the minimum viable product (MVP) stage.
    • Observers: Over 30 central banks and monetary authorities from around the world are observing members, including the US Federal Reserve, the European Central Bank, and the Bank of England.
  • Status: The project reached the Minimum Viable Product (MVP) stage in mid-2024, meaning it has enough features to be used for real-value transactions by early adopters and is suitable as a testbed for new use cases. The UAE has since officially launched its use of the platform with a payment to China.
  • Geopolitical Context: The project has garnered significant attention as a potential alternative to the U.S. dollar-dominated financial system, particularly among the BRICS nations, which has led to some geopolitical tensions and the BIS’s departure from the project’s oversight.

With the petrodollar system, established after a 1945 US deal with Saudi Arabia, where there was an agreement of the global practice of pricing and trading oil in U.S. dollars. This arrangement ensures consistent demand for dollars, solidifies the dollar’s status as the world’s primary reserve currency, and allows oil exporters to invest their dollar surpluses back into U.S. markets, benefiting the U.S. economy. The petrodollar system and SWIFT are two distinct but interconnected pillars of US dollar dominance in the global financial system. The petrodollar system creates demand for the US dollar, while SWIFT acts as the essential messaging network that facilitates these transactions. With the advent of the much more effective and efficient mBridge, mBridge is set to replace the U.S. dollar-denominated world financial system, dominated by SWIFT and the petrodollar system. 

Author: Dr. Allan Anthony Rwabutaza.
Original Article Publication Date: 4:06 pm ET, Sunday, January 11, 2026.