Saudi Arabia exits China-backed mBridge CBDC project: FT
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Saudi Arabia's central bank (SAMA) has exited the mBridge project, a China-backed central bank digital currency (CBDC) initiative aimed at enabling cross-border transactions between central banks. SAMA joined the project as a full participant in June 2024 and completed its proof of concept before ending its involvement on May 13, 2025. The project was developed initially by the Bank for International Settlements (BIS) Innovation Hub in cooperation with the central banks of China, Hong Kong, Thailand, and the UAE.
Why it matters
The exit of Saudi Arabia from mBridge marks a change in the composition of a project designed to make cross-border payments faster and cheaper through direct digital currency exchanges between central banks. The project has attracted scrutiny from US policymakers, with concerns it could offer an alternative settlement system to evade US sanctions. The source does not elaborate further on the broader implications of Saudi Arabia’s withdrawal.
Key context
mBridge was established in 2021 through a collaboration between the BIS Innovation Hub and several central banks to facilitate cross-border payments without relying on a single stablecoin, but rather through native digital currencies on a shared ledger. The BIS transferred the project to the participating central banks in October 2024 after reaching a minimum viable product stage. Chinese authorities have been increasing regulatory focus on stablecoins and CBDCs, especially regarding their role in cross-border payments.
Key numbers and entities
Saudi Arabian Monetary Authority (SAMA), Bank for International Settlements (BIS) Innovation Hub, central banks of China, Hong Kong, Thailand, United Arab Emirates, mBridge project, Agustín Carstens (former BIS General Manager), and Wang Xin (People’s Bank of China Research Bureau director). SAMA joined mBridge in June 2024 and exited on May 13, 2025.
What remains unclear
The source does not specify the reasons behind Saudi Arabia’s decision to withdraw beyond the statement that the exit was planned, nor does it detail the potential future direction or alternatives for Saudi Arabia’s cross-border digital currency strategies. The specific impact of this exit on the mBridge project’s development or broader geopolitical considerations is not established.