Breaking: BiS to Quit mBridge

BIS Weighs Shutting Down mBridge as Putin Advocates for BRICS Bridge

BIS Weighs Shutting Down mBridge as Putin Advocates for BRICS Bridge

Yesterday Bloomberg reported from a meeting the BiS had on Saturday. Here is our coverage of what was reported.

Summary:

The BIS is considering shutting down its mBridge cross-border payments platform after Russia's President Vladimir Putin spotlighted its potential to evade U.S.-driven sanctions and disrupt dollar dominance, especially as he proposes a BRICS-exclusive “BRICS Bridge” system.

Developed initially by central banks in China, Thailand, Hong Kong, and the UAE, mBridge recently reached a testing phase but faces scrutiny due to China’s role and Western concerns over sanction circumvention. While some BRICS members are cautious, the project reflects rising interest in alternatives to dollar-reliant systems, though internal divisions may impact the pace and reach of these initiatives.

Some precipitating events to consider leading up to this announcement

This all comes after 3 significant events hit the news over the last 6 months:

1. June: mBridge went live and the UAE did a successful significant transaction using its own currency

2. September: Agora, the west’s answer ot mBridge, was announced with the west’s major central banks and many commercial banks joining it immediately.

3. October: The BRICS 2024 Summit concluded declaring the cooperative’s mission to dedollarize in manifesto form and successfully marketing a new BRICS-Pay concept

**We will give analysis later today, early tomorrow. This is very significant. For now here is the full story**