Saudi Arabia leaves mBridge after completing digital currency trial

Key Points

1. SAMA ended active participation in mBridge after completing its proof of concept on May 13, 2025.
2. The platform enables direct cross-border settlement using digital domestic currencies and distributed ledger technology.
3. Riyadh’s exit highlights Gulf balancing between US financial ties and expanding economic links with China.

The latest

Saudi Arabia has ended active participation in mBridge, the China-led cross-border digital currency platform, after the Saudi Central Bank completed its proof of concept on May 13, 2025. SAMA described the exit, which had not previously been public, as part of the project’s original timetable. The kingdom joined in 2024 alongside China, Hong Kong, Thailand, the United Arab Emirates and the Bank for International Settlements, amid competition over international payment networks and standards.

Details

• Platform design: mBridge uses distributed ledger technology to let participating banks settle directly with digital versions of domestic currencies. Conventional cross-border transfers can pass through several correspondent banks and take days; the alternative is intended to accelerate settlement, lower transaction costs, reduce foreign-exchange friction and limit dependence on intermediaries.
• Development stage: The project reached minimum viable product status in 2024, moving beyond technological experimentation toward a platform capable of supporting real transactions. The BIS later concluded its role, while participating central banks continued development. Macau joined this year and launched the system in June; China, Thailand, the UAE and Hong Kong remain involved.
• Dollar implications: Direct central-bank settlement in domestic digital currencies could reduce use of the dollar as an intermediary in some transactions. The platform is an additional payment rail rather than a replacement for the dollar or Swift, but sits within debate over de-dollarisation and financial flexibility.
• Standards contest: China has promoted broader international use of the renminbi and built infrastructure less dependent on Western payment networks. US officials have warned Chinese influence over emerging systems could shape rules for data privacy, cybersecurity, interoperability and sanctions enforcement—areas central to future payment architecture.
• Riyadh’s calculus: Saudi Arabia retains deep security and financial ties with the United States while expanding trade, technology and investment links with China, a major buyer of Saudi oil. The riyal remains pegged to the US dollar. SAMA said the departure should not be read as a broader geopolitical shift. A person familiar with the matter told the Financial Times participation was always limited and the exit should not be attributed to US pressure.
• Financial shift: Central banks are testing digital currencies as commercial banks develop tokenised deposits and institutions trial blockchain settlement. The BIS has said innovation could accelerate payments and competition while creating new financial and macroeconomic risks.

Background

The UAE’s continued role keeps the Gulf central to mBridge’s next phase. The Emirates have invested heavily in financial technology, blockchain and digital payments to reinforce Dubai and Abu Dhabi as international financial centres, while other Gulf economies explore central bank digital currencies, tokenised assets and new cross-border systems.

What’s next

The next concrete indicator will be mBridge’s progress from minimum viable product to practical commercial use, including activity after Macau’s June launch and continued development by China, Thailand, the UAE and Hong Kong.