Asia — Between the Digital Yuan, mBridge and Bitcoin: Who is Building the New Order | SforNews

ASIA — BETWEEN THE DIGITAL YUAN, MBRIDGE AND BITCOIN: WHO IS BUILDING THE NEW ORDER
Diagnosis of the old model and its place in the new energy-digital system
INTRODUCTION: A BRIEF DIAGNOSIS
Asia is the most complex and strategically important region in the new energy-digital system. It is a continent that is simultaneously:
• The architect of the new payment infrastructure — China is commercializing mBridge, a platform for cross-border settlements based on CBDCs. The project has processed approximately $69 billion in transactions, of which ~95% is in the digital yuan [1][5]. By June 2026, mBridge had attracted 49 participating banks, with total transaction volume reaching nearly 500 billion yuan [5].
• Three different regulatory laboratories — Hong Kong, Singapore and Japan have created competing but complementary models for regulating crypto assets. Hong Kong focuses on innovation and licensing. Singapore emphasizes consumer protection and institutional integrity. Japan is focused on tax reduction and bank-issued stablecoins [3][7].
• The largest stablecoin market — in 2025, Asia accounted for $12.5 trillion in stablecoin flows, with the Singapore-China corridor being the most active [7][11]. The region is home to more than 326 million cryptocurrency users [4][12].
• The region where Bitcoin Asia 2026 announced the first “hashrate bear market” in history — global hashrate peaked at ~1.3 ZH/s in late 2025 and has since been gradually declining. The reason: miners are switching to AI and HPC [2][6][10].
The paradox of Asia: the region is simultaneously building two different systems. China is creating a state-owned CBDC infrastructure to replace SWIFT and the dollar. Hong Kong, Singapore and Japan are creating regulated markets for private stablecoins and crypto assets. They are not directly competing. They are creating parallel worlds [1][3][5][7].
SECTION 1. THE OLD MODEL: WHAT WAS, WHAT BROKE
The Asian economic model for decades rested on three pillars:
Export orientation — China, Japan, Korea, ASEAN countries as the world’s factory.
The US dollar as reserve currency and settlement instrument — most cross-border settlements went through SWIFT and correspondent accounts in dollars [1][9].
Government regulation of financial markets — central banks controlled the money supply, exchange rates and cross-border flows.
This model works, but it is failing.
The dollar is no longer a neutral instrument. After the 2022 sanctions and geopolitical fragmentation, countries are looking for alternatives to SWIFT and dollar-based settlements. China is building mBridge as an alternative [1][5].
Crypto assets have become too big to ignore. More than 326 million users in Asia [4][12], $12.5 trillion in stablecoin flows [7][11]. Regulators can no longer pretend this doesn’t exist.
The map (dollar, SWIFT, state control) no longer reflects the territory (mBridge, stablecoins, tokenization, three different regulatory approaches) [1][3][5][7].
SECTION 2. ENERGY PROFILE: WHAT EXISTS, WHAT DOES NOT
Asia has the most complex energy landscape in the world. The region is home to both the largest producers and the largest consumers of energy, as well as countries that are entirely dependent on imports.

Key fact: Asia is the only region where state-owned CBDC infrastructure (China) and regulated private markets (Hong Kong, Singapore, Japan) exist in parallel, without intersecting. This creates a dual reality where one part of Asia is building the future through central banks, and the other — through private markets [1][3][5][7].
New element: hashrate bear market due to AI.
In 2026, the mining industry faced an unexpected competitor — AI data centers. Global hashrate peaked at ~1.3 ZH/s in late 2025 and has been declining since. The reason: public miners are switching to AI and HPC, where profitability is higher [2][6][10].
What this means for Asia:
• China, which was the largest miner before 2021, is watching equipment being redistributed.
• Hong Kong has become the venue where this global shift is being discussed.
• Countries with cheap energy (Laos, Myanmar, Pakistan) could become new mining hubs if they can compete with AI data centers for megawatts [2][6][10].
Conclusion: Asia is the region with the most complex energy and regulatory landscape. There is no unified strategy. There are three models that coexist, compete and complement each other. And all of them face a new challenge — competition for megawatts from AI.
SECTION 3. THE DIGITAL YUAN AND mBRIDGE: CHINA’S ALTERNATIVE TO SWIFT
Here lies — Asia’s main architectural project.
mBridge is a platform for cross-border settlements based on CBDCs (Central Bank Digital Currencies), which China is commercializing through its Hong Kong structure. The project involves the central banks of China, Hong Kong, Thailand, the UAE and Saudi Arabia [1][5].
The numbers:
• Total transaction volume: ~470 billion yuan (~$69 billion) [1][5].
• By June 2026: 49 participating banks, of which 21 are foreign [5].
• ~95% of volume is in digital yuan (e-CNY) [1][5].
• By the end of 2025, volume reached nearly 500 billion yuan [5].
How it works:
• The platform enables direct settlements between CBDCs of participating countries, without intermediaries and without the need to hold crypto assets [1][5].
• Fees are roughly half those of standard international payment systems [1].
• Governance passed from the BIS to the participating central banks in October 2024 [1][5].
Strategic significance:
• mBridge gives China a payment infrastructure that competes with SWIFT on cost and with blockchain networks on settlement speed [1][5].
• The Atlantic Council calls this not a direct threat to the dollar, but a “gradual erosion” of dollar dominance in specific corridors [1].
• China is also developing “数币达” (CBETS) — a platform for cross-border settlements through which offshore participants can connect via Hong Kong [5].
Difference from Ripple and Stellar:
• mBridge does not use a token intermediary (XRP or XLM) for settlements. These are direct CBDC transactions between central banks [1].
• While Ripple processed $15 billion in 2024 and Stellar $5.5 billion in Q1 2026, mBridge is state infrastructure, not a private network [1].
SECTION 4. THREE REGULATORY LABORATORIES: HONG KONG, SINGAPORE, JAPAN
Here lies — Asia’s main contradiction. Three jurisdictions have created three different models, and none has definitively won [3][7][8].
4.1. Hong Kong — leader in innovation and access to capital
Hong Kong has become Asia’s most visible crypto test case [3][7].
Key developments:
• Stablecoins Ordinance (August 2025) — licensing of stablecoin issuers under HKMA supervision [3][7][8].
• First licenses issued on April 10, 2026 — Anchorpoint Financial Limited and HSBC [3][7].
• Project Ensemble (November 2025) — tokenization pilot program with Standard Chartered, HSBC, Bank of China (Hong Kong), BlackRock and Franklin Templeton [3][7].
• 11 licensed crypto exchanges from the SFC by early 2026 [3][7].
• Asia’s first spot Bitcoin and Ether ETFs — launched April 30 [3][7].
Reap — a Hong Kong-based stablecoin card issuer — processes ~$6 billion annually. According to its research, B2B stablecoin flows grew from $100 million per month in early 2023 to more than $3 billion in 2025 [7][11].
4.2. Singapore — consumer protection and institutional integrity
Singapore is the most conservative and institutionally clean market in Asia [3][7][8].
Key features:
• Amendments to the Financial Services and Markets Act — all digital token providers, including foreign exchanges, must obtain an MAS license [3][7][8].
• Ban on crypto purchases via credit cards [3][7].
• 29 DPT (Digital Payment Token) licenses by November 2024 [3][7].
• Stable regulatory environment since 2023 — Circle, Coinbase, BitGo, Anchorage are among the licensed [3][7].
The paradox of Singapore: strict rules have not reduced activity. On the contrary, they have created trust among institutional players. The Singapore model is “regulate to attract” [3][7].
4.3. Japan — tax reform and bank-issued stablecoins
Japan, one of the first countries to regulate crypto exchanges, is now revisiting its model [3][7][8].
Key changes:
• Reduction of capital gains tax on crypto from 55% to 20% (aligning with stocks) [3][7].
• Mandatory exchange reserves to cover cyberattacks [3][7].
• Stablecoin pilot project with three major banks (November 2025) [3][7].
• Final version of the Travel Rule (August 2026) — 5 jurisdictions added [3][7].
Japan’s strategy: make crypto compatible with the existing banking system, rather than a parallel industry [3][7].
SECTION 5. SOUTHEAST ASIA AND INDIA: GROWING MARKETS
Here lies — Asia’s second tier [4][12].
Indonesia: crypto transaction volume is projected at ~$31 billion in 2025 [4][12].
Vietnam: launched a pilot program for licensing crypto exchanges [4][12].
India: regulation is tightening. Exchanges have been ordered to cease trading in privacy coins [4][12]. Offshore exchanges are receiving AML non-compliance notices, and access to unregistered platforms is being restricted [4][12].
SECTION 6. ARCHITECTURAL CONCLUSION: WHAT PATH IS AVAILABLE TO ASIA
Asia is the only region that simultaneously:
Is building a state-owned alternative to SWIFT through mBridge ($69 billion in volume, 49 banks) [1][5].
Is creating three different regulatory models for crypto assets (Hong Kong, Singapore, Japan) [3][7][8].
Is the largest stablecoin market ($12.5 trillion in flows in 2025) [7][11].
Is simultaneously experiencing the first hashrate bear market in Bitcoin history due to competition with AI [2][6][10].
The region’s weaknesses:
Fragmentation of approaches. There is no unified strategy. China is building CBDC infrastructure. Hong Kong, Singapore and Japan are building regulated markets for private stablecoins. They are not competing — they exist in parallel universes [1][3][5][7].
Regulatory uncertainty in Southeast Asia. Vietnam and Indonesia are only beginning to create rules. India is tightening regulation [4][12].
Energy competition with AI. The mining industry is losing energy and infrastructure to AI, changing the global hashrate landscape [2][6][10].
Political risk. mBridge is perceived as a geopolitical project. Its use may be limited by countries not in China’s orbit [1][5].
CONCLUSION: HOW ASIA FITS INTO THE GLOBAL TRANSITION
Asia is not one player. Asia is a battlefield of three strategies.
China is building a state-owned alternative to SWIFT through mBridge and the digital yuan. Its goal is not to replace the dollar immediately, but to create parallel infrastructure [1][5].
Hong Kong, Singapore and Japan are building regulated markets for private stablecoins and crypto assets. Their goal is to attract institutional capital and remain competitive [3][7][8].
The rest of Asia (Indonesia, Vietnam, India) is watching and trying to fit into one of these models by creating its own rules [4][12].
Global significance: Asia shows that the new energy-digital system will not be monolithic. It will consist of state-owned CBDC platforms (China) and regulated private markets (Hong Kong/Singapore/Japan). They will coexist, compete and complement each other [1][3][5][7].
The question is not whether Asia will use Bitcoin, CBDCs or stablecoins. The question is which of these three models will win — or whether they will all exist in parallel, creating a new, fragmented reality.
COMPLETE LIST OF SOURCES
[1] Yahoo Finance — China’s mBridge Threatens SWIFT, XRP, XLM and the Dollar’s Role in Cross-Border Payments (June 2026)
[2] CoinPost — Bitcoin network enters first hashrate bear market, Twenty One Capital CEO says (September 2026)
[3] AIBC — Asia’s next crypto hub: Hong Kong, Singapore, Japan (May 2026)
[4] Phemex — Asia’s crypto developments: Vietnam, Indonesia, Russia, India, and Binance (January 2026)
[5] 东方财富 — 穆长春详解数字人民币跨境基础设施最新进展: mBridge累计交易额近5000亿元 (June 2026)
[6] Digital Today — Bitcoin network enters first hashrate bear market, Twenty One Capital CEO says (September 2026)
[7] Digital Today — Singapore, Hong Kong, Japan emerge as test beds for stablecoin payment networks (August 2026)
[8] Dainik Jagran — Asia-Oceania crypto regulation: licensing, stablecoins, tokenization (January 2026)
[9] Blockchain News — China digital yuan vs USDT/USDC: anti-dollar stablecoin plan (January 2026)
[10] KuCoin — Twenty One Capital CEO discusses Bitcoin mining at Bitcoin Asia 2026 (August 2026)
[11] Longport — Asia becoming global testing ground for stablecoin payment rails (August 2026)
[12] Phemex (Vietnamese) — Crypto developments in Vietnam, Indonesia, Russia, India (January 2026)
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