January 21, 2026
By Anjali Kochhar
China’s digital yuan has reached a major milestone in its expansion beyond domestic borders, with cross-border central bank digital currency infrastructure processing more than $55 billion in transactions. The development highlights growing momentum behind China’s efforts to modernise global payment systems using digital currencies issued by central banks.
The progress comes through Project mBridge, a multi-CBDC settlement platform designed to enable direct cross-border payments between participating economies. The initiative brings together central banks from mainland China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia, aiming to reduce reliance on traditional correspondent banking systems and improve efficiency in international settlements.
Recent data shows that the platform has processed around 4,000 cross-border transactions with a combined value exceeding $55 billion. This represents a sharp increase from its early pilot stages in 2022, indicating accelerating adoption among financial institutions involved in international trade and payments.
China’s digital yuan, also known as the e-CNY, accounts for the vast majority of transaction volume on the platform. This dominance reflects China’s early investment in CBDC infrastructure and its push to integrate the digital yuan into both domestic and international payment use cases. The People’s Bank of China has steadily expanded trials of the e-CNY across retail payments, transportation systems, and government services, while also testing its use in wholesale and cross-border settlements.
The growing use of mBridge aligns with China’s broader strategy to strengthen alternative payment rails outside of traditional dollar-based systems. By enabling real-time settlement between central bank digital currencies, the platform seeks to lower transaction costs, reduce settlement delays, and improve transparency for cross-border payments. Supporters argue that such systems could offer a more efficient option for international trade, particularly among emerging markets.
Alongside cross-border growth, the digital yuan has also seen rapid expansion domestically. Official figures indicate that trillions of yuan worth of transactions have been processed through the e-CNY within China, with usage increasing sharply year over year. Authorities have continued to refine the system’s technical capabilities and regulatory framework as adoption grows.
Despite its rapid progress, analysts note that mBridge remains small compared with established global payment networks. The platform is still in an early phase and is unlikely to challenge the dominance of existing international settlement systems in the near term. However, its development signals a gradual shift toward diversified payment infrastructure, particularly for bilateral and regional trade settlements.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
