23rd September 2026
By Anjali Kochhar
Saudi Arabia has withdrawn from mBridge, a China-led cross-border digital currency platform designed to enable faster transactions between central banks using digital currencies.
The Saudi Central Bank, known as SAMA, confirmed that it was no longer participating in the project after completing its proof-of-concept phase in May 2025. According to SAMA, the withdrawal was part of its original plan following the completion of the test and was not presented as a response to pressure from the United States.
Saudi Arabia initially joined mBridge as an observer in 2023 before becoming a full participant in 2024. The project was created to explore how wholesale central bank digital currencies (CBDCs) could be used to improve cross-border payments and settlement between financial institutions.
What Is mBridge?
mBridge is a multi-central-bank digital currency platform developed with the participation of China, Hong Kong, Thailand, the UAE and the Bank for International Settlements (BIS), among others.
The platform uses blockchain-based infrastructure to allow participating institutions to conduct cross-border transactions directly using central bank-issued digital currencies. The model is designed to reduce the time and costs associated with conventional international payments, which often involve correspondent banks and multiple settlement layers.
One of the broader implications of the project is its potential to reduce the role of the US dollar as an intermediary currency in some cross-border transactions. This has attracted attention from US officials, particularly because of concerns over China’s influence on the platform’s standards, governance and potential implications for sanctions enforcement.
Why Saudi Arabia’s Exit Matters
Saudi Arabia’s departure comes after the BIS also ended its formal involvement with mBridge in 2024. Former BIS General Manager Agustín Carstens described the institution’s withdrawal as a planned transition rather than a politically motivated decision.
However, the project continues to operate with Asian and Middle Eastern central banks. Macau has also recently moved toward live transactions using the platform, indicating that mBridge’s development has continued despite the departure of some participants.
For Saudi Arabia, SAMA’s explanation means the exit should primarily be viewed as the conclusion of its planned proof-of-concept rather than a formal rejection of digital-currency technology or cross-border payment innovation.
The development nevertheless adds to the wider debate over how central banks will modernise international payments and whether digital currencies could eventually provide alternatives to parts of the existing dollar-based financial infrastructure.
For now, Saudi Arabia’s withdrawal does not by itself signal a shift away from the dollar, but it marks another important development in the global race to build new digital payment networks.
