Saudi Arabia Exits China-Linked mBridge CBDC Project

Saudi Arabia has withdrawn from mBridge, a cross-border payments project built around central bank digital currencies (CBDCs), after completing its planned proof-of-concept phase, according to the Financial Times.

The Saudi Central Bank (SAMA) joined the project as a full participant in June 2024, becoming part of an initiative designed to allow central banks and financial institutions to conduct cross-border transactions using digital versions of sovereign currencies. SAMA said its participation ended after the completion of the proof of concept in May 2025 and that the conclusion had been planned from the outset.

The departure removes Saudi Arabia from a project that has attracted international attention because of its potential to reshape cross-border payments and reduce reliance on traditional correspondent banking networks.

How mBridge Works

mBridge was launched in 2021 through a collaboration involving the Bank for International Settlements (BIS) Innovation Hub and the central banks or monetary authorities of China, Hong Kong, Thailand and the United Arab Emirates.

Rather than relying on a single digital currency, the platform was designed as a multi-CBDC network. Participating jurisdictions can use their own central bank digital currencies on a shared distributed-ledger infrastructure, allowing transactions and foreign-exchange settlements to take place directly across borders.

The BIS said the project reached its minimum viable product stage in 2024, with the platform capable of supporting real-value transactions and further experimentation with cross-border payments. Saudi Arabia subsequently joined as a full participant.

The system was developed to address some of the long-standing frictions in international payments, including transaction costs, processing times and the complexity created by correspondent banking arrangements.

Saudi Arabia Completes Its Trial

SAMA's participation focused on assessing whether wholesale CBDCs could improve cross-border payment and settlement between commercial banks.

The central bank said its involvement was part of its broader efforts to develop more efficient and innovative cross-border payment infrastructure. Its official announcement in 2024 described mBridge as a platform for facilitating transactions between commercial banks in different jurisdictions.

According to the Financial Times, SAMA completed its proof of concept on May 13, 2025, before ending its participation. The central bank indicated that this conclusion had been part of its original plan rather than a newly adopted policy.

The timing is significant because mBridge has continued to attract attention well beyond its technological objectives.

mBridge Draws Geopolitical Scrutiny

The project's development has been closely watched in Washington because of its potential implications for the international payments system and the role of the US dollar.

A 2024 report by the US-China Economic and Security Review Commission examined mBridge as a potential alternative infrastructure for cross-border settlement and raised concerns about whether such systems could eventually be used by countries seeking to reduce their exposure to dollar-based financial networks.

Those concerns have added a geopolitical dimension to what began as a central-bank technology project.

The BIS, however, has rejected the characterization of mBridge as a politically driven initiative. Former BIS General Manager Agustín Carstens said in October 2024 that the organization was leaving the project because it had reached a stage where the participating central banks could continue developing it independently, rather than because of political considerations.

The BIS subsequently listed mBridge as a concluded project, with the participating central banks continuing the work under the framework established during the initiative.

China Continues Exploring Digital Cross-Border Payments

Saudi Arabia's departure comes as China continues examining how digital currencies and blockchain-based financial infrastructure could reshape international payments.

Chinese officials have also been discussing the growing role of stablecoins and CBDCs in cross-border transactions as digital payment technologies expand globally.

For mBridge, the Saudi exit does not mark the end of the project. China, Hong Kong, Thailand and the United Arab Emirates remain among the core participants listed by the BIS, while the platform continues to represent one of the most prominent experiments in multi-CBDC cross-border settlement.

Saudi Arabia's withdrawal instead closes its participation following the completion of its planned trial, leaving the remaining participants to determine how the platform develops as central banks around the world continue testing digital alternatives for international payments.