RIYADH — The Saudi Central Bank (SAMA) has confirmed that it is no longer a participating member of Project mBridge, a China-led blockchain-based platform designed for cross-border payments using central bank digital currencies (CBDCs).
SAMA said its withdrawal followed the completion of its planned proof-of-concept exercise on May 13, 2025, and was consistent with its original testing timeline. The decision was not publicly announced at the time and became known after SAMA confirmed the details to the Financial Times in a report published on September 20, 2026.
SAMA initially joined mBridge as an observing member in 2023 under the Bank for International Settlements (BIS). It later became a full participant in 2024, helping develop the platform’s minimum viable product and conducting its own proof-of-concept testing.
People familiar with the matter told the Financial Times that it would be inaccurate to draw wider conclusions from Saudi Arabia’s withdrawal or directly link it to external pressure. One source said SAMA no longer wants to be publicly associated with the project but continues to engage with related work more discreetly.
How mBridge works
mBridge uses distributed ledger technology to allow participating central banks and commercial banks to settle cross-border transactions directly using digital versions of their national currencies. The system is intended to reduce transaction costs and settlement times while reducing reliance on intermediary currencies such as the U.S. dollar.
The project was originally developed by the BIS Innovation Hub, Bank of Thailand, Hong Kong Monetary Authority, Digital Currency Institute of the People’s Bank of China and Central Bank of the United Arab Emirates.
The BIS left the project in October 2024, saying the participating central banks were capable of continuing development independently. The BIS said its departure was not due to political considerations.
U.S. concerns over alternative payment systems
mBridge has attracted attention in Washington because alternative payment systems could reduce reliance on the U.S. dollar and traditional Western financial networks. U.S. officials have also raised concerns that such systems could potentially be used to reduce the effectiveness of sanctions.
U.S. President Donald Trump has threatened countries pursuing alternatives to the dollar, particularly within the BRICS group, with tariffs of up to 100 percent. However, mBridge itself is not a BRICS project, and SAMA has not said that U.S. pressure caused its withdrawal.
Saudi Arabia maintains close security ties with the United States while also expanding its economic relationship with China. The Saudi currency remains pegged to the U.S. dollar.
mBridge continues after Saudi exit
Saudi Arabia’s departure does not end the project. China, Hong Kong, Thailand and the United Arab Emirates remain the core participants.
The Monetary Authority of Macao joined mBridge in 2026 and activated the system for participating banks on June 2. On its first day, three Macao banks completed 23 cross-border transactions involving trade settlement and remittances with mainland China, Hong Kong and the UAE. The transactions were valued at nearly 1.3 billion Macao patacas.
Reports indicate that mBridge has processed tens of billions of dollars in transactions in recent periods, with a large share settled in digital yuan. The project is moving toward wider commercial use, including discussions about establishing an operating entity, possibly in Hong Kong.
The Reserve Bank of India remains an observing member while separately developing its own capabilities for cross-border CBDC settlements.
Saudi Arabia’s participation in mBridge has therefore ended following completion of its planned testing, while the remaining participants continue working toward broader use of the cross-border digital currency platform.
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