Recent geopolitical developments have once again raised uncomfortable questions about the resilience of the current global order and the reliability of long-standing economic and financial leadership. For governments around the world, one reality is becoming increasingly difficult to ignore: geopolitical power, economic influence and monetary infrastructure are inseparable.
For decades, control over energy resources—particularly oil—has shaped global power dynamics. Whether a country is an exporter or an importer, access to energy has influenced diplomacy, trade relationships and conflict. In recent years, however, this equation has expanded. Critical minerals, and the ability to mine, process and control their supply chains, have become just as strategically important. In this domain, China has quietly but decisively established itself as the global leader.
That leadership now extends well beyond physical resources. China has also emerged as the most advanced architect of digital monetary infrastructure. The launch of the digital yuan (e-CNY) has provided a large-scale, real-world testing environment for a retail central bank digital currency. Piloted across multiple provinces and used as one of three official payment methods at the Beijing Winter Olympics in 2022, the initiative has allowed China to refine distribution, resilience and adoption at population scale.
More significantly, the digital yuan has positioned China at the forefront of what is increasingly described as digital de-dollarisation.
As countries reassess their exposure to the US dollar in global trade and settlement, CBDCs offer an alternative path. Digital currencies enable near-instant settlement, greater transparency and, critically, the ability to transact outside traditional correspondent banking rails. For some jurisdictions, this represents efficiency and modernization. For others, it provides a mechanism to reduce vulnerability to sanctions and the political leverage embedded in today’s dollar-centric financial system.
This shift is particularly relevant for emerging economic blocs seeking greater monetary sovereignty. The BRICS+ countries, among others, are actively exploring ways to reduce reliance on the dollar for cross-border trade. CBDCs—whether domestic, interoperable or connected through multilateral platforms—provide the technological foundation to support that ambition.
The BRICS bloc (Brazil, Russia, India, China and South Africa) has expanded rapidly in recent years, with new members now including Iran, Egypt, Ethiopia, Indonesia and the United Arab Emirates, while Saudi Arabia continues to evaluate participation. One initiative under development is BRICS Pay, a decentralised digital payment system designed to facilitate seamless cross-border transactions using a gold-backed unit of account. While the platform has yet to launch, it remains in pilot and testing phases, with expectations that it could be operational before 2030.
Another project of growing significance is mBridge, the multi-currency central bank digital currency platform designed to enable cross-border payments using distributed ledger technology. Unlike traditional correspondent banking models, mBridge connects both central and commercial banks within a shared technical infrastructure, enabling near-instant, low-cost and final settlement across jurisdictions.
Project mBridge emerged from collaboration beginning in 2021 between the BIS Innovation Hub, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People’s Bank of China and the Hong Kong Monetary Authority. The Saudi Central Bank joined in 2024, and the platform has since evolved into a production-ready CBDC project—one with the potential to materially reshape cross-border payments underpinned by central bank trust.
The transformation underway is not simply about faster payments or financial innovation. It reflects a deeper recalibration of power, trust and control in the global financial system. Just as oil once defined geopolitical influence, digital monetary infrastructure may now determine who sets the rules in the next phase of the global economy.
