Saudi Arabia Exits China-Led Digital Currency Platform

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Saudi Arabia Exits China-Led Digital Currency Platform

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Saudi Arabia has officially withdrawn from mBridge, a digital currency platform led by China, which aims to provide an alternative system for cross-border payments that reduces reliance on the US dollar. The Saudi Central Bank (SAMA) confirmed its departure, stating it completed its proof-of-concept exercise on May 13, 2025, and that this was consistent with its initial plan.

SAMA initially joined mBridge as an observing member in 2023 under the umbrella of the Bank for International Settlements (BIS), before becoming a full participant in June 2024. The mBridge project, which began in 2021, utilizes distributed ledger technology to enable direct transactions between central banks using their own digital currencies, aiming to reduce the time and cost associated with foreign exchange and lessen the dollar’s role as an intermediary.

While Saudi officials cited governance and compliance concerns, particularly regarding data handling and the platform’s legal framework, the withdrawal also carries geopolitical implications. The United States has expressed concerns that such platforms could be used to circumvent sanctions and undermine the dollar’s global dominance. The BIS itself “graduated out” of the project in October 2024, stating the participating central banks were capable of independent continuation. Following Saudi Arabia’s exit, the mBridge platform’s core participants include the People’s Bank of China, the Hong Kong Monetary Authority, the Bank of Thailand, and the Central Bank of the United Arab Emirates.

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