A surprise new twist in Putin’s currency wars

WHEN THE Bank for International Settlements (BIS) launched mBridge in 2021, a project aimed at revolutionising cross-border payments, it did so with much fanfare and, among some people, high expectations. The new system, which it was developing with China and others, would harness the power of digital currencies and the trustworthiness of central banks to make international financial flows faster, simpler and cheaper, it said. Yet when the BIS withdrew from the project, it slunk away in the midst of a geopolitical stink. On October 31st Agustín Carstens, the boss of the BIS, announced that the organisation was leaving mBridge in response to a question near the end of a “fireside chat” at a banking conference in Madrid.