The Saudi Central Bank has ended its participation in mBridge, a prominent cross-border digital currency platform spearheaded by China.
Saudi officials confirmed that the kingdom formally ceased its involvement after completing a planned proof-of-concept trial that had tested wholesale central bank digital currency settlement. The multi-central bank initiative relies on distributed ledger technology to allow institutions to conduct instant bilateral transactions in their national currencies without relying on traditional dollar-denominated clearing systems. The platform had drawn intense political scrutiny in Washington, where American policymakers expressed concern that alternative cross-border rails could weaken the global primacy of the U.S. dollar and circumvent sanctions.
Saudi Arabia's departure follows the exit of the Bank for International Settlements from the project in late 2024 amid similar political sensitivities. Financial analysts view Riyadh's withdrawal as a careful diplomatic maneuver to avoid antagonizing Washington while maintaining delicate strategic ties with its primary crude oil customer, Beijing. Remaining founding participants in the platform 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.