Central Bank Digital Currencies (CBDCs) are quickly gaining attention worldwide, especially as countries explore ways to make international payments faster, safer, and more cost-effective. While most people hear about CBDCs in the context of digital rupees or digital dollars, an equally important area is how these currencies could transform transactions that cross national borders. In this article, we’ll take a close look at the major cross-border CBDC projects—including the pioneering mBridge and the new Project Agorá—and what they could mean for the future of payments, trade, and financial systems.
Why Cross-Border Payments Need an Upgrade
Sending money across borders is often slow and expensive. Banks have to rely on intermediaries, different time zones, varying regulatory systems, and even paper processes in some cases. The result is high costs, settlement that can take days, and a lack of transparency. The G20 has made improving cross-border payments a global priority—CBDCs are now on the table as part of the solution.
What Are Cross-Border CBDC Projects?
Unlike regular CBDC initiatives (which are domestic), cross-border projects explore how digital currencies issued by different central banks can interact. The main goals include:
- Making international settlements real-time or near-instant
- Reducing the costs for banks and users
- Increasing transparency and reducing fraud
- Allowing direct transactions in different currencies without intermediaries
Key Projects Shaping the CBDC Landscape
Let’s highlight the most significant projects to date—what sets them apart, what they aim to solve, and their current status.
mBridge: A Cross-Border Payment Bridge
mBridge (multiple Central Bank Digital Currency Bridge) is a joint initiative led by the Hong Kong Monetary Authority, Bank of Thailand, Central Bank of the UAE, Digital Currency Institute of the People’s Bank of China, and the Bank for International Settlements Innovation Hub. It started in 2021 as an effort to connect different countries’ CBDCs and streamline real-time settlements.
- Main goal: Enable participating countries to settle cross-border payments directly using their CBDCs.
- How it works: A single blockchain-based platform where banks and companies from participating regions can transact with each other in real time, using their local digital currency.
- Progress: The project completed several successful pilots, proving that cross-border CBDC settlements can be done in seconds, not days.
Read our latest insights on the evolution of real-time payments
Jura: Linking Europe and Asia
Project Jura brought together the Bank of France, Swiss National Bank, and the BIS, exploring the direct exchange of digital euro and digital Swiss franc for cross-border settlements, including securities transactions. It demonstrated that tokenized CBDCs can settle both currencies and securities almost instantly, reducing counterparty risk and delay.
Project Dunbar: A Multi-CBDC Platform
This initiative involved the central banks of Australia, Malaysia, Singapore, and South Africa. The goal: create a shared platform where different CBDCs can circulate and be used by commercial banks to settle cross-border transactions. Dunbar showed how such a system could save costs and boost efficiency but also raised questions about legal and regulatory frameworks.
Project Agorá: A New Global Chapter
Launched in 2024, Project Agorá brings together a broad group of central banks—the Bank for International Settlements (BIS), Bank of Korea, Bank of England, Bank of Japan, Swiss National Bank, Federal Reserve Bank of New York, and the European Central Bank. Its aim is bolder than before: harmonize digital currency standards and technology to support scalability and interoperability worldwide.
- Main goal: Build an open, standardized framework for cross-border payments that can be adopted globally.
- What’s new: Focus on not only connecting countries, but also aligning standards, legal requirements, and technical protocols.
- Next steps: The project’s research and pilot phases are set to focus on large-volume wholesale payments and possible integration with commercial financial markets.
Project Agorá reflects a clear trend: global coordination is now central to CBDC development and could shape the future of cross-border transactions.
How Would Cross-Border CBDCs Change Payments?
- Instant Settlements: No waiting days for remittances or international business deals to clear. Settlement can be near-instant, around the clock.
- Lower Costs: Reducing intermediaries could mean fewer fees and better rates for both banks and end-users.
- Greater Transparency: Digital records make transaction histories clear, helping to combat fraud and money laundering.
- Currency Convenience: Businesses can transact directly in their preferred currency, relying less on USD or EUR as bridge currencies.
- Regulatory Clarity: CBDC projects can build compliance (KYC/AML) directly into transaction flows, easing regulatory challenges.
Challenges That Remain
- Regulatory Differences: Each country’s rules on currency, privacy, reporting, and capital flows can conflict.
- Technical Standards: Platforms need to communicate efficiently and securely—no small task.
- Interoperability: Ensuring that CBDCs of different countries interact seamlessly is a work in progress.
- Cybersecurity: Cross-border digital networks are attractive targets, requiring complex defense measures.
- Adoption Hurdles: For any system to work, banks and corporations must be ready and willing to use it.
India and the Future of Cross-Border CBDCs
India is among countries actively researching and testing CBDC platforms, including pilot work by the Reserve Bank of India. While not yet part of mBridge or Project Agorá, India has begun collaborating with countries like the UAE for digital rupee pilot corridors, setting up for future participation in multi-CBDC platforms. As more commerce shifts digital and cross-border, being at the table in global projects will likely be key for India’s financial system.
FAQs on Cross-Border CBDC Projects
What is the main goal of projects like mBridge and Agorá?
The primary goal is to make cross-border payments faster, cheaper, and more reliable by connecting different countries’ central bank digital currencies through a shared or interoperable platform.
How do cross-border CBDCs differ from cryptocurrency?
CBDCs are government-issued and backed, while cryptocurrencies are typically decentralized and not issued by any central authority. CBDCs are designed with national policy and stability in mind, especially for cross-border use.
Will individuals be able to send money internationally with CBDCs?
Most current projects focus on “wholesale” (bank-to-bank) payments, but in the future, retail users—including businesses and individuals—could benefit as the technology evolves and regulations adapt.
What are the biggest risks with cross-border CBDCs?
Risks include cybersecurity threats, complexity of legal compliance across countries, and potential misuse without strong anti-fraud controls. Ongoing pilot projects aim to identify and address these challenges.
How can I stay updated about CBDC developments and digital payments?
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Conclusion: Watching the Future of Cross-Border Payments
The path from mBridge to Project Agorá marks a major transformation in how money can move worldwide. While challenges remain, these initiatives bring digital payments closer to instant settlement, lower costs, and global coordination. If you want to better understand the impact of digital currencies in India and abroad, or are curious about banking trends, explore our other articles on FinWitty.com or start comparing digital-ready credit cards for smarter financial choices.