China has allegedly associated central bank digital currency (CBDC) transactions with ten ASEAN nations and six Middle Eastern countries, sparking controversy over potential misinformation.

China has allegedly associated central bank digital currency (CBDC) transactions with ten ASEAN nations and six Middle Eastern countries, sparking controversy over potential misinformation.

In a recent flurry of reports, there have been claims about the expansion of mBridge, a cross-border payments solution, and the digital Renminbi (RMB) cross-border payment system, allegedly linking ten ASEAN countries and six Middle Eastern jurisdictions. However, it is essential to clarify that no verified public sources have confirmed this large-scale linkage.

The mBridge joint venture, which includes China, Hong Kong, Thailand, the UAE, Saudi Arabia, and a number of observers, was launched as a minimum viable product in June 2024. The Bank for International Settlements (BIS) stepped away from mBridge involvement in November 2024, stating that the project had graduated.

Rumors circulated in 2024 that the BIS was considering withdrawing from mBridge due to potential involvement of a sanctioned country. However, it is important to note that these were unconfirmed reports.

As of late last year, mBridge had covered five ASEAN countries and six Middle Eastern ones, if observers are counted. But for mBridge to reach the reported 38% figure, all central banks in each of the connected countries and their commercial banks must be connected. Given the slow and gradual adoption of mBridge by Chinese banks, the theoretical 38% figure is extremely theoretical.

The news implying that about 38% of global trade could bypass the US dollar-dominated SWIFT network is also misleading. While China is advancing RMB digital payment usage and exploring CBDC cross-border mechanisms, no verified public source currently confirms a specific, large-scale digital RMB cross-border payment linkage to exactly ten ASEAN and six Middle Eastern countries.

Reports about the expansion of digital yuan pilots and transactions mainly describe city-level or regional trials without specifying a system linking ten ASEAN plus six Middle Eastern jurisdictions. Similarly, the Cross-border Interbank Payment System (CIPS) uses RMB for some banking transactions involving about 100 ASEAN banks, encouraging RMB internationalization, but not confirming a digital RMB full linkage to multiple ASEAN or Middle Eastern states.

It is also worth noting that ASEAN members are developing interoperable CBDC proof of concepts to facilitate lower-cost cross-border payments, but these remain in pilot or planning phases rather than established systems. The widespread use of RMB in cross-border trade (around 30% of ASEAN trade goods are settled in RMB) and joint projects like Singapore-China paperless trade are significant steps towards RMB internationalization, but they do not confirm a formal digital RMB system linked to exactly ten ASEAN countries or six Middle Eastern jurisdictions.

Moreover, it is important to clarify that China-ASEAN relations show deepening RMB usage and supply chain financing integration; however, ASEAN cross-border digital payment systems emphasize initiatives like Indonesia’s QRIS linking several countries through QR code payments rather than a centralized digital RMB platform.

A major Chinese news outlet, Sina, ran an article about the ASEAN and Middle Eastern links, but it has since been taken down. The report suggesting that mBridge has expanded to include ten ASEAN countries and six Middle Eastern jurisdictions is most likely false, given the improbable expansion in a short period. The news about the ASEAN and Middle Eastern links in mBridge was allegedly first published on 17 March 2025, during a visit by Hank Paulson, the former US Secretary of the Treasury under George W Bush, to the People's Bank of China.

In conclusion, while there are significant strides being made in the field of cross-border digital payments, it is crucial to verify information before drawing conclusions. The reported expansion of mBridge and the digital RMB cross-border payment system to include ten ASEAN countries and six Middle Eastern jurisdictions remains unconfirmed by credible sources.

1. Government officials, regulators, and finance industry experts should exercise caution and verify information before drawing conclusions about the expansion of mBridge, a cross-border digital payment system, linking ten ASEAN countries and six Middle Eastern jurisdictions.
2. Despite the emergence of digital Renminbi (RMB) cross-border payment systems and the growth of stablecoins in the industry, there is a lack of verified public sources confirming a specific, large-scale linkage of the digital RMB to exactly ten ASEAN and six Middle Eastern countries.
3. As the finance industry evolves and various governments and organizations explore CBDCs and cross-border payments, it is essential to maintain a focus on accurate insights and verified information, ensuring that we avoid spreading unsubstantiated claims or misleading news regarding the status and capabilities of emerging technologies like mBridge and the digital RMB.

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