How projects such as Project mBridge are changing Europe and Portugal

New-generation global payment projects, such as Project mBridge, developed under the auspices of the Bank for International Settlements, are gradually changing the architecture of international finance.

Although Europe is not a key participant in mBridge, the consequences of such initiatives are already being felt in both the EU and Portugal.

This is not about instantly replacing the existing system, but about restructuring the logic of cross-border money: who controls the payment rails, which currencies are used, and how dependent states are on external centres of power.

1. Europe: from a universal system to multiple payment rails

Historically, Europe has been embedded in a dollar-centric system:

• Settlements via SWIFT,

• The dollar as an intermediate currency,

• Correspondent accounts in the US.

Projects such as mBridge show that the world is moving towards a multi-system model, where:

• There are several parallel payment networks;

• Settlements can take place directly between countries;

• The dollar is no longer a mandatory intermediary.

For Europe, this means a strategic choice: either adapt to the new reality or risk losing financial sovereignty. Source (BIS):

2. Acceleration of European CBDC projects

One of the direct effects of such initiatives has been the acceleration of work on the digital euro. The European Central Bank openly acknowledges that global CBDC projects require Europe to respond in order to maintain control over its payment infrastructure.

The digital euro is not intended to replace cash, but rather to serve as:

• An anchor for European payment sovereignty;

• An alternative to private and foreign payment systems;

• A tool for integration into future cross-border networks.

Source (ECB)

3. Reducing dependence on SWIFT - without loud statements

Important: Europe is not officially talking about replacing SWIFT.

But de facto, regulators understand that:

•    SWIFT is an infrastructure with a geopolitical dimension;

•    access to it may be restricted;

•    alternative payment routes are a matter of sustainability.

The mBridge project and similar platforms show that alternatives are technically possible.

For Europe, this means:

• Diversification of payment channels;

• Increased resilience in crisis scenarios;

• Reducing systemic risks.

Source (Financial Times)

4. Portugal: a small country - part of a major restructuring

For Portugal, the impact of such projects is less noticeable, but no less important.

As an EU and eurozone country, Portugal:

• Does not participate directly in mBridge;

• Follows European monetary policy;

• Depends on cross-border capital flows, tourism and service exports.

New payment architectures affect Portugal indirectly, through the EU:

• Acceleration of the introduction of the digital euro;

• Strengthening of requirements for banks and fintech;

• Increased competition between payment systems.

5. Opportunities for Portuguese business and fintech

New opportunities are opening up for businesses and start-ups in Portugal:

• Cheaper and faster cross-border payments in the future;

• Integration with new CBDC platforms;

• Growing demand for compliance, cybersecurity and payment technologies.

This is particularly important for:

• Service exporters;

• Fintech start-ups;

• Companies working with Africa, Latin America and Asia.

Source (World Economic Forum)

6. New risks: fragmentation of the financial world

Along with opportunities, risks are also growing:

• The world may split into several payment blocks;

•    Cross-border transactions will become more complicated from a legal perspective;

•    The role of the state and central banks will increase;

•    The importance of compliance and regulation will grow.

For Europe, this means that financial neutrality is no longer possible - active infrastructure management is required. Source (IMF)

7. Strategic conclusion for Europe and Portugal

Projects such as mBridge are not an "Asian alternative to Europe" but a signal of the end of the monolithic financial system.

For Europe:

• Priority - payment sovereignty;

• Own cbdc and infrastructure;

• Readiness for a multipolar world of money.

For Portugal:

• Adaptation through pan-European mechanisms;

• Development of fintech and digital competencies;

• Participation in shaping rules, rather than passive acceptance of them.

Conclusion

Project mBridge is changing Europe not directly, but through context.

It shows that the money of the future will be:

• Digital,

• Multilateral,

• Geopolitically sensitive.

For Europe and Portugal, this means one thing:

financial stability is no longer just a matter for banks -

it is a matter of infrastructure, technology and strategic decisions.

---