Saudi Arabia has stepped back from Project mBridge, a multi-central-bank digital currency platform closely associated with China, after finishing a limited testing phase last year. The move became public this month when the Saudi central bank confirmed the details to the FT, more than a year after its formal participation ended.
mBridge was designed to let participating central banks settle cross-border payments and foreign-exchange trades directly on a shared blockchain ledger using their own digital currencies.
Supporters argue the approach can shorten settlement times, lower costs, and reduce the need for the dollar as an intermediary currency or for conventional correspondent-banking networks such as Swift.
The project began in 2021 as a collaboration among the Bank for International Settlements Innovation Hub, the People’s Bank of China, the Hong Kong Monetary Authority, the Bank of Thailand, and the Central Bank of the United Arab Emirates.
It later reached a minimum viable product stage and has been moving toward commercial use.
Saudi Arabia first joined as an observer in 2023 under the BIS umbrella.
In 2024 it became a full participant, taking part in work on the platform’s basic version and running its own proof-of-concept exercise.
According to a statement provided to the FT, the Saudi Central Bank (SAMA) “successfully completed its mBridge proof of concept on 13 May 2025.”
After that date, it said, it was no longer a participating member.
Officials described the withdrawal as consistent with the original plan rather than an abrupt policy reversal.
The announcement has drawn attention because of the geopolitical setting.
The United States has viewed mBridge with suspicion, warning that such systems could eventually offer countries a way around dollar-based rails and, in some cases, sanctions.
The BIS itself left the project in October 2024 after the platform reached minimum viable product status, saying participating central banks could continue the work independently.
Then-BIS general manager Agustín Carstens insisted the departure was not driven by political considerations.
People familiar with the Saudi decision told the Financial Times it would be inaccurate to treat Riyadh’s exit as evidence of US pressure, noting that the kingdom’s involvement had been limited from the start.
One source added that SAMA no longer wanted a public role but continued to follow related work more quietly.
The project has not stalled. China, Hong Kong, Thailand, and the UAE remain core members.
The Monetary Authority of Macao joined in 2026 and activated the system for banks in June, with early transactions covering trade settlement and remittances.
The digital yuan has accounted for the large majority of volumes on the ledger. Saudi Arabia’s riyal remains pegged to the dollar, and the kingdom continues to balance close security ties with Washington against growing economic links with Beijing.
Analysts generally describe the Saudi step as more symbolic than operational.
It removes a major oil exporter from the public roster of participants but does not dismantle the technical platform or halt experiments by remaining members.
For Riyadh, completing a controlled proof of concept allowed it to gain experience with wholesale CBDC technology without a long-term public commitment. For observers of global payments, the episode illustrates the tightrope many countries walk as they test alternatives to the existing dollar-centric system while managing alliance politics.