Saudi Arabia withdraws from China-backed mBridge CBDC project

Saudi Arabia withdraws from mBridge cross-border CBDC project

Saudi Arabia has withdrawn from mBridge, a China-backed cross-border digital currency project designed to enable direct transactions between central banks, according to the Financial Times.

SAMA, Saudi Arabia's central bank, joined mBridge as a full participant in June 2024 and ended its participation after completing a proof of concept on May 13, 2025. SAMA said it had planned to end its participation, the FT reported.

What mBridge is and how it worked

mBridge was established in 2021 through a collaboration between the Bank for International Settlements Innovation Hub and the central banks of China, Hong Kong, Thailand, and the United Arab Emirates. The aim was to make cross-border payments faster and cheaper.

Rather than using a single stablecoin (a type of digital currency pegged to a traditional asset like a fiat currency), the platform allowed participating central banks to issue and transact in their own digital currencies on a shared ledger, including for cross-border payments and foreign exchange transactions.

The BIS handed the project over to the participating central banks in October 2024, after mBridge reached its minimum viable product stage. Then-BIS General Manager Agustín Carstens said the BIS departure was not politically motivated.

US scrutiny of the project

Despite the BIS stating its departure was not politically motivated, mBridge has drawn attention from US policymakers. A 2024 report from the US-China Economic and Security Review Commission said mBridge could eventually provide an alternative cross-border settlement system for countries seeking to evade US sanctions.

China's broader digital currency push

Separately, China's central bank has increasingly focused on the role stablecoins could play in cross-border payments as their use expands globally. In June, People's Bank of China Research Bureau director General Wang Xin called for closer monitoring of stablecoins and central bank digital currencies in cross-border payments, along with greater international coordination. These comments came months after Chinese authorities restricted the unauthorized issuance of renminbi-pegged stablecoins and tokenized real-world assets, including by foreign entities.

What is confirmed

• SAMA joined mBridge as a full participant in June 2024 and ended its participation after completing a proof of concept on May 13, 2025.
• SAMA stated it had planned to end its participation.
• mBridge was built in 2021 by the BIS and the central banks of China, Hong Kong, Thailand, and the UAE.
• The BIS transferred the project to participating central banks in October 2024.
• A 2024 US commission report flagged mBridge as a potential tool for sanctions evasion.

What is still unclear

Cointelegraph contacted the Saudi Central Bank for comment but did not receive a response by the time of publication. The specific reasons behind SAMA's decision to leave were not detailed beyond the completion of its proof of concept.

Why it matters

mBridge was seen as a potential alternative to existing cross-border payment systems. Its development by China-backed entities and the scrutiny it received from US policymakers highlight the growing geopolitical tensions around digital currencies and cross-border financial infrastructure.

Sources

• Cointelegraph