Woofun AI reports that Mu Changchun, director of the Digital Currency Research Institute at the People's Bank of China, declared the global cross-border payment system has entered a new phase driven by stablecoin expansion. The mBridge multilateral central bank digital currency project, which launched in June 2024, recorded a cumulative transaction value of approximately 500 billion yuan, or about $69 billion, by the end of 2025. This volume validates the growing utility of central bank digital currencies for wholesale settlements beyond initial pilot stages.

The initiative began as a collaboration between the central banks of China, Hong Kong, Thailand, and the United Arab Emirates before expanding to include more than 20 observing members. Mu Changchun outlined a vision for mBridge to evolve into a distinct financial market infrastructure constructed by central banks and utilized by financial institutions. This proposed framework prioritizes multilateral governance and mutual benefit, explicitly rejecting dominance by any single nation or private entity.

Woofun AI data shows the project directly challenges the incumbent SWIFT-based system, which faces criticism for its dependence on correspondent banking networks and inconsistent settlement times. While stablecoins provide near-instant settlement and reduced fees, they introduce significant risks regarding regulatory oversight and systemic financial stability. In contrast, mBridge and similar projects aim to deliver a central bank-backed alternative that preserves monetary sovereignty while improving transaction efficiency.

The convergence of stablecoin proliferation and CBDC development is fragmenting the cross-border payments landscape into a more competitive arena. Market participants may benefit from faster, cheaper, and more transparent international transactions, yet they must navigate an increasingly complex regulatory environment. This dual trajectory marks a definitive departure from the monolithic structure of traditional correspondent banking.