mBridge Changes to New Consensus Protocol Using Ethereum (ETH) to Challenge SWIFT

• The mBridge project for cross-border CBDC payments is changing the Consensus protocol to the new Chinese blockchain consensus protocol.
• Using Ethereum’s Solidity smart contract language and the Ethereum Virtual Machine, some are speculating it could switch to Ripple technologies.

The mBridge project, a platform built by central banks to support real-time, peer-to-peer, cross-border payments, is shifting from the mBridge ledger to a new Chinese blockchain consensus protocol. The platform designed and built by a number of countries will utilize wholesale central bank digital currencies (CBDC) from Thailand, Hong Kong, China, and the UAE. In addition, the Swedish and French central banks are also known observers who might also look to join the alliance based on its success.

As earlier reported, the Bridge utilizes a number of technologies including Ethereum’s Solidity smart contract language and the Ethereum Virtual Machine. Maintaining some of the core technologies that make up the platform, the Bridge ledger is now moving to a new Chinese blockchain consensus protocol.

Driven by a number of countries, the adoption of mBridge could usher in millions of users to the platform. This would make it a direct rival of SWIFT. SWIFT is a vast messaging network banks and other financial institutions use to quickly, accurately, and securely send and receive information. Primarily controlled by the West, the network has been prone to interference, sometimes used as a financial weapon to lock individuals and even states out of the international financial system. The success of mBridge will change the landscape of the international financial system and could have repercussions in politics.

As CNF has been reporting a global alliance going by the acronym BRICS has been expanding and growing in popularity. The alliance comprises China, Brazil, Russia, India and South Africa. Earlier this year, the bloc further invited six emerging market group countries Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. One of the key agendas for the bloc is dethroning the U.S. dollar.

When Will They Switch to Ripple and XRP?

As countries look to blockchain technology to launch CBDCs, it’s been clear that Ripple and its revolutionary XRP Ledger is a top contender to deploy these digital assets. Financial technology firm Ripple Labs has already launched its Central Bank Digital Currency (CBDC) platform where financial institutions, governments, and central banks can mint their stablecoins and CBDCs.  As a result, Over 8 countries are constructing their CBDCs on the XRP Ledger.

For now, Ripple is facing a legal battle with the U.S. Securities and Exchange Commission (SEC) which has placed its future under great uncertainty and barred it from inking some major partnerships. However, experts believe the company will record a win. In the near future, it could offer the technology utilized in the mBridge blockchain framework.

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