Saudi Arabia has withdrawn from the Multiple CBDC Bridge (mBridge) platform, a cross-border payment project led by China, according to a confirmation from the Saudi Central Bank (SAMA) to the Financial Times. The withdrawal occurred last year but was not publicly disclosed until SAMA's recent statement.
mBridge is a multi-central bank digital currency (CBDC) initiative that aims to facilitate international payments using central bank digital currencies. It was developed by the Bank for International Settlements (BIS) in collaboration with the central banks of China, Hong Kong, Thailand, and the United Arab Emirates. Saudi Arabia joined as a participant in 2024.
The project has been seen as a potential alternative to the US dollar-dominated SWIFT system, though its actual impact remains limited. The BIS exited the project in 2024, and China has continued to lead it independently.
Saudi Arabia's decision to leave mBridge may reflect shifting geopolitical and economic priorities. The kingdom has been deepening ties with China while maintaining its longstanding relationship with the United States. The withdrawal could also indicate concerns about the platform's governance or effectiveness.
As of now, there is no official explanation from Saudi Arabia or China regarding the reasons for the withdrawal. The development highlights the challenges facing cross-border CBDC initiatives and the complex dynamics of international finance.
