China Launches Digital Yuan Settlement Network Bypassing SWIFT
China quietly activated a global settlement system using its digital yuan, cutting out SWIFT and slashing transaction times from days to seconds — a major milestone in the internationalization of its currency.
Beijing’s Silent Financial Revolution
The People’s Bank of China has launched a cross-border payment network based on the digital yuan, linking 16 countries across ASEAN and the Middle East.Unlike traditional transfers that can take 3–5 days through SWIFT, the new mBridge platform finalizes transactions in just 7–8 seconds.
Officially developed in cooperation with the Bank for International Settlements (BIS), the system reduces transaction fees by 98% compared with conventional correspondent banking.
While Beijing has not made a major public announcement, insiders say the network already handles roughly 38% of global trade flows.
From ASEAN to the Gulf — Instant Connectivity
The mBridge infrastructure is now integrated with all 10 ASEAN member states — Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore and Thailand — as well as six Middle Eastern countries including the UAE and Saudi Arabia.Pilot tests were impressive:
– A transaction between Hong Kong and Abu Dhabi took 7 seconds.
– A payment from China to Indonesia was completed in 8 seconds.
Researchers estimate that 23 central banks are already connected to mBridge, and the total volume of cross-border payments has surpassed $1.2 trillion.
Digital Yuan Versus SWIFT — and the Dollar’s Dominance
Analysts view mBridge as China’s most ambitious attempt to circumvent Western financial infrastructure and reduce dependence on the US dollar. The platform offers an alternative for countries facing sanctions or looking to settle trade directly with Beijing.Economist Liang Wei from Tsinghua University notes:
The initiative is also seen as a test case for the future of central-bank digital currencies (CBDCs), as it demonstrates how instant settlement and programmable money can reshape international commerce.
Global Impact and Next Steps
Western observers worry that mBridge could undermine the effectiveness of financial sanctions and weaken the dollar’s role in global trade. Meanwhile, several developing nations see it as a gateway to faster, cheaper, and more inclusive payments.The People’s Bank of China plans to expand the network to Africa and Latin America in 2026, further accelerating the shift toward multipolar financial systems.
Editorial Team — CoinBotLab