Saudi Arabia exits mBridge CBDC project after proof of concept
In brief
- SAMA exited mBridge on May 13, 2025, following proof of concept completion.
- mBridge enables central banks to issue and transact digital currencies on shared ledger for cross-border payments.
- US policymakers scrutinized mBridge for potential sanctions evasion capabilities.
What is mBridge?
mBridge was established in 2021 through a collaboration between the Bank for International Settlements Innovation Hub and the central banks of China, Hong Kong, Thailand and the United Arab Emirates. The platform allows participating central banks to issue and transact in their own digital currencies on a shared ledger for cross-border payments and foreign exchange transactions.
The BIS handed mBridge over to participating central banks in October 2024 after the project reached its minimum viable product stage. At that point, Saudi Arabia remained engaged as a full participant, though its tenure was short-lived.
US scrutiny and geopolitical concerns
The project has drawn scrutiny from US policymakers. A 2024 report from the US-China Economic and Security Review Commission raised concerns about the platform's potential uses. The commission warned that mBridge could eventually provide an alternative cross-border settlement system for countries seeking to evade US sanctions.
Saudi Arabia's exit signals a recalibration of the kingdom's stance on the initiative. The withdrawal doesn't necessarily indicate a shift in Riyadh's broader strategic posture, but it does reflect the geopolitical complexity surrounding projects that could reshape global payment infrastructure outside traditional Western-dominated systems.
