Taizhou branch of Bank of Communications completes city's first cross-border digital currency bridge transaction

The Taizhou Branch of the Bank of Communications successfully executed the city's first cross-border transaction via the Multiple Central Bank Digital Currencies Bridge (mBridge) for current account transfers. This transaction allowed a local Sino-foreign joint venture to remit 7.695 million yuan ($1.07 million) in profit dividends for 2024 to its Hong Kong parent company, with the funds arriving within minutes.

This pioneering transaction not only sped up fund transfers but also reduced the company's overall settlement costs by around 30 percent, representing a significant advancement in Taizhou's digital finance transformation and efforts to facilitate cross-border trade.

Li Juan, general manager of the bank's international department, stated that the mBridge project is a multinational effort coordinated by the Bank for International Settlements Innovation Hub Centre in Hong Kong, the Digital Currency Institute of the People's Bank of China, and various central banks. Utilizing distributed ledger technology, it provides a cost-effective and efficient system for cross-border payments and promotes the global use of the renminbi.

"The mBridge enables real-time settlement, full traceability, and zero intermediary fees," Li explained. "It reduces settlement times from days to minutes."

As an early pilot bank for the project, the Taizhou branch has been proactively exploring innovative applications of mBridge. Upon discovering the joint venture's profit remittance requirements in early June, the bank promptly collaborated with its finance team, clarified the procedures, and reached a quick consensus.

Since profit remittances often involve complex documentation and regulatory oversight, the bank's international team offered detailed guidance to ensure compliance. Through efficient coordination, the bank set up a payment channel with HSBC Hong Kong.

"This has been a real game-changer for us," said a representative from the company's finance department. "Not only has it improved our settlement efficiency, but it has also strengthened our global operations."