China links central bank digital currency (CBDC) transactions to ten Association of Southeast Asian Nations (ASEAN) nations and six Middle Eastern countries, sparking controversy over the potential for misinformation and control of financial systems.

China links central bank digital currency (CBDC) transactions to ten Association of Southeast Asian Nations (ASEAN) nations and six Middle Eastern countries, sparking controversy over the potential for misinformation and control of financial systems.

In the realm of digital finance, a significant development has been the launch of mBridge, a cross-border payments joint venture using central bank digital currencies (CBDC), in June 2024. The venture, which includes China, Hong Kong, Thailand, the UAE, Saudi Arabia, and several other countries, was initially reported to have five ASEAN members (Thailand, Cambodia, Indonesia, Malaysia, and the Philippines) and six Middle Eastern countries (UAE, Saudi Arabia, Bahrain, Egypt, Jordan, and Turkey) participating.

However, a Proshare report from Nigeria, dated 2025, claimed that mBridge had expanded to include ten ASEAN countries and six Middle Eastern jurisdictions. This assertion, though, has not been confirmed by reputable sources, including Proshare or other major financial news platforms. The publicly available information does not specifically mention such a connection or the detailed status of this link.

The digital RMB cross-border payment system, part of mBridge, has seen substantial growth, with transaction volumes exceeding $34 billion by mid-2025. This growth is indicative of a considerable domestic rollout and growing international interest. Hong Kong, a strategic hub for RMB internationalization and digital finance innovation, plays a crucial role in this expansion.

Yet, explicit linkage of the digital RMB payment system with multiple ASEAN and Middle Eastern countries has not been reported in the available sources, leaving the veracity of the Proshare report in question. If such a connection exists, it may not yet be publicly disseminated or covered by major financial news outlets as of the current date.

It is worth noting that the Bank for International Settlements (BIS) has stated that mBridge was never intended for BRICS, but as a broader public good. As of late last year, there were a couple of dozen observers in mBridge. The widespread adoption of mBridge by Chinese banks, however, has been slow and gradual, making the 38% figure, which suggests that about 38% of global trade could bypass the US dollar-dominated SWIFT network, extremely theoretical at present.

Intriguingly, the original Chinese news story about mBridge's ASEAN and Middle Eastern links was allegedly published on 17 March 2025, during a visit by Hank Paulson, the former US Secretary of the Treasury under George W Bush, to the People's Bank of China. There are also allegations of Qatar and Iran currently participating in mBridge, but these are not mentioned in earlier reports.

The BIS stepped away from mBridge involvement in November 2024, stating that the project had graduated. The widespread adoption and potential expansion of mBridge and the digital RMB cross-border payment system continue to be topics of interest and speculation in the global financial community.

1.The Proshare report from Nigeria, dated 2025, suggested that mBridge, the cross-border payments joint venture using central bank digital currencies (CBDC), may have expanded to include ten ASEAN countries and six Middle Eastern jurisdictions.

2.Despite the Proshare report, the publicly available information does not specify the detailed status of mBridge's potential connections with multiple ASEAN and Middle Eastern countries.

3.The BIS, in a statement from late 2024, clarified that mBridge was never intended for BRICS but as a broader public good, making speculations about its involvement of countries like Qatar and Iran questionable.

4.The advancements in technology, particularly in digital finance and stablecoins, are prompting intriguing insights and ongoing discussions in the global finance industry, with mBridge's development and potential expansions being a significant focus of these conversations.

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