Hong Kong Expert Discusses Similarities of BRICS Payment System and mBridge

BRICS Countries Explore New International Payment System

In recent discussions, Chen Fengxiang, a visiting professor and MBA program associate director at City University of Hong Kong, highlighted a noteworthy development regarding an international payment system proposed by the BRICS countries (Brazil, Russia, India, China, and South Africa). According to Odaily, this system bears similarities to the mBridge project, which is already making waves in the digital currency space.

The Role of mBridge

The mBridge initiative is designed to enhance cross-border payments by leveraging blockchain technology. This technology enables direct settlement between central banks while using their own currencies, effectively streamlining transactions and reducing reliance on traditional banking systems.

Hong Kong’s Expertise in Digital Payments

Hong Kong, known for its robust financial sector, has accumulated years of experience in handling complex payment systems. With its existing infrastructure and technological know-how, the city is well-positioned to facilitate the smooth operation of mBridge. Should this system function seamlessly, incorporating additional currencies into the platform would become a straightforward process.

Benefits of a BRICS Payment System

The proposed BRICS payment system aims to mitigate risks associated with international sanctions that have increasingly challenged financial transactions among nations. By allowing countries to transact directly without intermediary banks, the BRICS nations could bolster their economic sovereignty and reduce vulnerabilities.

Conclusion

As the conversation around international payments evolves, the collaboration among BRICS nations, alongside innovations like mBridge, signals a significant shift towards a more integrated and resilient global financial system. This initiative could pave the way for enhanced economic cooperation and financial independence among member countries.