#MBridge

[goldinvest]

Neue BRICS Pläne schocken den Westen

[siliconpalms]

Why the mBridge Will Ultimately Fail: The Incompatibility of Communism and Capitalism

In the rapidly evolving landscape of global finance, the mBridge initiative, aimed at fostering cross-border payments between countries with different economic ideologies, stands as a bold experiment. This digital currency bridge, developed by central banks from China, Hong Kong, Thailand, and the United Arab Emirates, seeks to streamline and secure international transactions. However, despite…

[guidefinances]

Banking, bonds and Asia (2nd quarter 2023)

For investors in global macro equities, the reopening of China calls for an overweighting of Asian equities despite expected volatilities.

Here are the key events of the last quarter that have and will continue to influence global equity investments. They mainly concern the attractiveness of the banking sector and developments in Asia (China, Japan and India): Declining attractiveness of banks Banks are built on asymmetries between their liabilities and assets. They pay depositors or the central bank a low interest rate to borrow…

[empresa-journal]

Chinese central bank digital currency available in 15 Provinces

Chinese central bank digital currency available in 15 Provinces

The Chinese central bank digital currency (CBDC), the e-CNY, is available in 15 of China’s 23 provinces. Moreover, they have used the CNY in over 360 million transactions worth 100.04 billion yuan ($13.9 billion), China.com claims. Additionally, the People’s Bank of China (PBOC) is giving billions of e-CNY away to promote the CBDC. For example, the PBOC dispersed 40.2 million digital yuan worth…

[ctvmundo]

¿Nuevo golpe al dólar? Qué se sabe de mBridge, el innovador proyecto de pagos internacionales liderado por China

¿Nuevo golpe al dólar? Qué se sabe de mBridge, el innovador proyecto de pagos internacionales liderado por China

El director del Instituto de Investigación Digital del Banco Popular de China, Mu Changchun, proporcionó este martes nuevos detalles sobre el mBridge, el mayor proyecto transfronterizo de Moneda Digital de Banco Central (CBDC). Sus comentarios tuvieron lugar en el marco de la FinTech Week, celebrada del 31 de octubre al 4 de noviembre en Hong Kong. El especialista explicó que se trata de una…

[alwaysbewoke]

[rethinking-the-dollar]

Saudi Arabia's Bold Move: Is the US Dollar Being DETHRONED?

The 50-year Petrodollar deal between Saudi Arabia and the US is ending in June 2024, potentially diminishing the US dollar's global dominance and impacting the world economy. Saudi Arabia's strategic shift towards trading oil in other currencies, like the Chinese yuan, and its involvement in the CBDC initiative Project mBridge reflect significant changes in global economic dynamics.

[darkmaga-retard]

Jan Nieuwenhuijs

Sep 25, 2024

Written by Jan Nieuwenhuijs, originally publihshed at Money Metals.

Countries that participate in the novel cross-border payments system mBridge are each hoarding gold and are largely responsible for the bull market of the past two years.

How and when the global dollar standard will disintegrate is hard to predict, but setting up a non-dollar payments system (mBridge) and aggressively accumulating gold to replace U.S. Treasuries as the prime international reserve asset is a potent strategy to de-dollarize.

mBridge: An Instant Cross-Border Payment System

MBridge is an international payments project that was launched in 2021 by the Bank for International Settlements’ (BIS) Innovation Hub in Hong Kong. Currently, there are five full members—Thailand, China, Hong Kong, Saudi Arabia, and the U.A.E.—and over 30 observing members. 

The project aims to create a multi-central bank digital currency platform for participating central banks and commercial banks, built on distributed ledger technology (DLT) to enable instant cross-border payments and settlement. MBridge uses an Ethereum-compatible DLT network, the mBridge Ledger, developed by China’s Digital Currency Research Institute. Because China oversees the backbone of the technology, it’s immune to Western sanctions.

A common technical infrastructure has the potential to improve the current system and allow cross-border payments to be more efficient, immediate, and cheaper. On June 5, 2024, mBridge reached the Minimum Viable Product (MVP) stage.

A Surge in Gold Hoarding by mBridge Members

Readers who are familiar with my writings understand that the gold price is determined by global flows. Based on cross-border trade statistics, it’s clear that the East assumed dominance in the gold market starting in 2022, overtaking the West.

As stated in a previous article, formal gold import and export statistics represent private flows, but they can also reflect central bank activity. Aside from elevated peaks in private demand from China and Thailand, the Chinese and Saudi central banks (PBoC and SAMA) are largely responsible for the rally that commenced in 2022, both having vigorously stepped up gold purchases after the West froze part of Russia’s foreign exchange reserves.

Strikingly, according to available trade data, the countries in the driver’s seat of the gold market are all full members of mBridge: China, Saudi Arabia, Thailand, and Hong Kong (see chart below). Statistics by the U.A.E. lag several years and are misleading due to smuggling to India.

[nzingatchiguka]

🔴 Dollar 's Demise: End of Hegemony, Currency Multipolarity, mBridge, Gl...

[lastpoet24]

🔴 Dollar 's Demise: End of Hegemony, Currency Multipolarity, mBridge, Gl...

[emiratesnn]

"راك بنك" يحتفل بإنجاز جديد مع إتمام أوّل تحويل للدرهم الرقمي إلى عملة أجنبية عبر منصة mBridge

[alwayshistory]

The Petroyuan is Born: Saudia Arabia Joins the mBridge CBDC Transfer System

The Central Bank Digital Currency (CBDC) revolution is beginning in earnest as Saudi Arabia becomes a full member of the mBridge project. Saudi Arabia joining the platform will give it access to immediate, low-cost, cross-border currency transactions, which it will use to sell oil to China, giving rise to the petroyuan. With Saudi Arabia’s membership in mBridge, the question is not if but when…

[novumtimes]

Tencent Tests Use Cases for Trading Settlements Using Digital Yuan and Mbridge

Tencent, the Chinese tech giant, was revealed to be participating in the tests that the Chinese institutions have completed using Mbridge, a CBDC-enabled cross-borders settlement platform. Tencent participated through its international settlements arm Tenpay, which piloted the use case of the Chinese CBDC, the digital yuan, to settle e-commerce exports using Mbridge’s rails. Tencent Participated […] Source link via The Novum Times

[mikeo56]

Saudi Arabia makes the decision to abandon the petrodollar and suddenly we’re hearing a lot more about Saudi Arabian involvement in 9/11? Call me a crazy conspiracy theorist, but I don’t think this is a coincidence. All I’m saying is don’t be surprised if a lot more information about 9/11 suddenly comes to light…

Saudi Arabia has basically had impunity for 50 years, thanks to the petrodollar deal to make the US dollar the world’s reserve currency. The constant demand for the dollar meant the US could print as much money as it likes, giving it an unlimited military budget. The deal was that the US would militarily support the House of Saud, ensuring it remained in power, no matter how many heads it chopped or how many women it lashed. Yay freedom!

The Saudis had agreed to exclusively use greenbacks to sell crude oil since 1974, after the Nixon administration abandoned the Bretton Woods system. Those greenbacks were turned into bonds to stabilise the US economy and control the inflation that emerged during the Vietnam War years. The US needed to ensure it could afford to keep bombing countries whose leaders didn’t do as they were told.

Back then, it made more sense for the dollar to be the global reserve currency because the US made up 36% of the world’s economy, but this has fallen to 24% and will continue to fall, no matter how many people wear hats saying Make America Great Again! Of course, the deal was never going to last forever because at some point, we were going to have to shift to energy alternatives.

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Saudi Arabia has finally opted for currency diversification and made the decision to join BRICs - an alliance of countries who are sick of US economic hegemony and aim to set up a new reserve currency that would take away American power to unilaterally impose sanctions. When your assets are in dollars, the US can cut them off whenever it wants to. This means the US can weaponise access to money and cause big problems for any country that doesn’t obey. No wonder Saudi Arabia is opting for currency diversification. Who wants to live under the thumb of the US forever?

The Saudis are working on a new global payment system called mBridge with China, which is now its biggest oil partner, accounting for more than a fifth of its oil exports. China has surpassed the US as the world’s biggest economy and the shift away from the dollar will turn that gap into a chasm.

In 25 years, the dollar has fallen from 71% of global reserves to 59% and that trend is only going to continue. The trend of de-dollarisation is the reason Taiwan is being armed up to the eyeballs and we are so close to World War III.

Without the petrodollar, the US currency would not have its disproportionate strength and would instead perform like you would expect of a country of its economic output. De-dollarisation could collapse the military industrial complex, but the warmongers are hardly going to go down without a fight, are they? I mean it’s not in their nature!

The media never even mentions the petrodollar because they want you to think the US empire is built around freedom, democracy and having the fairest possible economic system. What it actually has is a monopoly built on military might. The US economic system is no more ethical than the Roman empire was - having the strongest military is not the same as being the good guys.

The petrodollar deal was enough to blow the lid off the idea that American intentions in the Middle East had anything to do with freedom and democracy. The US was willing to prop up one of the most brutal dictatorships in the world, and any other dictatorship that got behind the might of the dollar. As soon as any country threatened the dollar’s dominance, they found themselves in trouble. Saddam Hussein tried to sell oil in Euros. Colonel Gaddafi tried to set up an African central bank. Don’t be surprised if the US suddenly becomes very concerned about the human rights situation in Saudi Arabia…

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[kenbowe]

Big Chinese banks announce involvement in mBridge CBDC project - CoinGeek

[head-post]

Saudi Arabia ends petrodollar deal with US for multi-currency sales

The 50-year petrodollar deal between Saudi Arabia and the US expired with Saudi Arabia deciding not to renew the agreement.

The decision made by Saudi Arabia marks a significant departure from the long-standing financial agreement between the two countries, which dates back to 1974. That was a period marked by the effects of the Arab oil embargo and a marked spike in global oil prices. The agreement was aimed at creating a stabilised world oil market and ensuring a steady flow of oil from Saudi Arabia to the US. In return, Washington agreed to help Saudi Arabia with military strength and economic co-operation.

Saudi Arabia’s 50-year-old petrodollar agreement with the United States has expired, with no new agreement in place, BRICS News tweeted.

The decision puts a strain on trade relations between Riyadh and Washington. Historically, the petrodollar deal has provided stability and economic benefits to both countries, but Saudi Arabia’s move signals a shift away from dependence on the US dollar.

Furthermore, Saudi Arabia’s decision comes across as a significant step towards a global de-dollarisation programme. The country now has the ability to conduct sales of its largest asset in multiple currencies. By choosing to trade oil in multiple currencies, including the yuan, euro, yen and renminbi, Saudi Arabia diversifies its foreign exchange reserves and reduces its dependence on the US dollar.

The adoption of a multipolar monetary system is in line with broader global trends by alliances such as BRICS (Brazil, Russia, India, China, South Africa) and ASEAN (Association of Southeast Asian Nations).

Saudi Arabia has recently been actively exploring the use of digital currencies. The country recently joined the mBridge project, an initiative led by the Bank for International Settlements (BIS), which is exploring a multi-central bank digital currency platform.

In addition, the expiration of the petrodollar agreement between Saudi Arabia and the US will have major implications for the global economy, as Saudi Arabia’s subsequent financial manoeuvres will open the door to a paradigm shift. The US has long benefited from the dollar’s status as the world’s dominant currency. The currency’s position has provided the US with significant economic advantages.

Read more HERE