- Saudi Arabia ended formal participation in China-led digital payments project mBridge in May 2025
- Saudi Central Bank completed a proof-of-concept exercise and exited the project as a member
- mBridge enables cross-border transactions using digital currencies and reduces US dollar reliance
Saudi Arabia has ended its formal participation in mBridge, a China-led digital payments project designed to enable faster cross-border transactions using central bank digital currencies, according to a report.
The Saudi Central Bank said it completed its participation in the project in May 2025, after successfully finishing a planned proof-of-concept exercise. The central bank described its involvement as part of a research programme and said it was no longer a participating member after completing the technical test, the Financial Times reported.
mBridge uses distributed-ledger technology to allow participating central banks and financial institutions to settle cross-border transactions directly using digital versions of national currencies. The system is intended to reduce transaction costs and settlement times while potentially limiting the need for the US dollar as an intermediary currency.
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Saudi Arabia joined the project in 2024 alongside China, Hong Kong, Thailand and the United Arab Emirates. The Bank for International Settlements, which had previously supported the initiative, announced in October 2024 that it was stepping back as the participating central banks took responsibility for further development.
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FT, however, cited a person familiar with the matter as saying that Saudi Arabia's central bank remains quietly involved with the programme, despite ending its formal membership.
The development comes amid wider efforts to develop alternative cross-border payment infrastructure. Projects such as China's digital yuan and mBridge are being used to explore faster, more direct settlement of international transactions and reduce reliance on traditional dollar-based payment systems, as per Reuters.
The platform has faced scrutiny from US officials and policymakers over concerns it could allow participants to bypass dollar-based systems like SWIFT.
Although the BIS exited the project amid reports of pressure from Washington, former BIS General Manager Agustín Carstens stated the institution withdrew because the initiative had transitioned to partner central banks, rather than due to political pressure.
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