Zillar Barta Desk, Riyadh : Saudi Arabia has withdrawn from mBridge, a China-led cross-border digital currency initiative designed to enable faster and potentially cheaper international payments using central bank digital currencies (CBDCs).
The Saudi Central Bank (SAMA) said it completed its proof of concept for mBridge on May 13, 2025, after participating in the project's development. Following the completion of the proof of concept, Saudi Arabia was no longer a participating member of the project.
mBridge uses distributed-ledger technology, or blockchain, to facilitate direct cross-border payments and foreign-exchange transactions between participating central banks and commercial banks using digital versions of national currencies. The system was developed to address some of the cost, speed and operational challenges associated with traditional international payments.
Saudi Arabia joined the project's minimum viable product platform in 2024. The initiative involves the People's Bank of China, Hong Kong Monetary Authority, Bank of Thailand and Central Bank of the UAE, alongside Saudi Arabia. The Bank for International Settlements, which helped launch the project, announced its departure in 2024, saying the participating central banks were capable of taking the project forward independently.
The development comes as mBridge moves toward a potential commercial role in international payments. The platform could reduce reliance on correspondent banking networks and the use of the US dollar as an intermediary currency in some transactions. However, the Saudi Central Bank has described its withdrawal as part of its original plan following completion of its proof-of-concept work.
The mBridge initiative has attracted international attention because of its potential implications for the global payments system and the future use of digital currencies in cross-border trade. Analysts have also pointed to the project's potential to strengthen China's role in international finance, while US officials have raised concerns about the broader geopolitical implications of alternative payment infrastructure.
Despite Saudi Arabia's withdrawal as a participating member, mBridge continues to be developed by its remaining central-bank partners. The initiative reflects the wider global push to explore faster, lower-cost cross-border payments through central bank digital currencies, blockchain technology and new financial infrastructure.
