Saudi Arabia has withdrawn from Project mBridge, a China led cross border digital currency payment initiative designed to enable central banks to settle transactions directly using digital currencies and blockchain technology. Riyadh joined the project in 2024 but confirmed that it exited in 2025, describing the move as part of its original plan rather than a sudden policy reversal.
The development comes as mBridge moves toward broader commercial use and continues to attract attention because its blockchain based infrastructure can reduce reliance on correspondent banks and dollar based intermediaries in cross border payments. Reuters reported in January 2026 that the platform had processed more than $55 billion in transactions, while China has continued expanding its use for international payments.
Saudi Arabia Exits Project mBridge
Project mBridge is a multi central bank digital currency platform built on distributed ledger technology. The initiative was developed by the Bank for International Settlements (BIS), the People’s Bank of China, the Hong Kong Monetary Authority, the Bank of Thailand and the Central Bank of the United Arab Emirates, with the Saudi Central Bank joining in 2024.
The platform allows participating financial institutions to conduct cross border payments and settlements directly through digital currencies. Its architecture aims to reduce the number of intermediaries involved in international transfers, potentially lowering transaction costs and improving settlement speed compared with conventional correspondent banking networks.
Saudi Arabia’s participation initially placed the country alongside China, Hong Kong, Thailand and the United Arab Emirates in testing blockchain based central bank digital currency infrastructure. According to the Financial Times, Saudi Arabia completed its proof of concept by May 2025 and subsequently withdrew from the initiative. The Saudi Central Bank said the withdrawal followed its original plan for participation.
The Saudi exit does not mean that the country’s broader financial relationship with China has ended. Saudi Arabia continues to maintain significant economic ties with China, while its currency remains pegged to the US dollar and the kingdom continues to hold substantial dollar linked financial exposure.
Why mBridge Matters for Digital Payments
The significance of mBridge comes from its potential to create an alternative infrastructure for international payments. Instead of relying entirely on traditional correspondent banking channels, the platform uses distributed ledger technology to allow participating institutions to settle transactions directly using central bank digital currencies.
That model could reduce settlement delays, foreign exchange friction and transaction costs. It also creates a payment pathway in which the US dollar does not necessarily need to function as an intermediary currency, which is why mBridge has attracted attention in discussions about cross border payments and global financial diversification.
The project has continued to develop despite Saudi Arabia’s departure. In July 2026, Bank of China said cumulative mBridge transaction volumes had surpassed 600 billion yuan, while reporting large cross-border transactions completed through the platform. The bank said mBridge uses blockchain technology to establish a peer to peer payment network and reduce reliance on multi layer correspondent banking.
In August 2026, the South China Morning Post reported that mBridge was moving closer to broader commercial adoption. Industrial Bank had launched mBridge payment services connecting mainland China with Hong Kong and Macau, while a 500 million yuan cross border transaction demonstrated the platform’s growing use for larger financial transfers.
Saudi Exit and the Dollar Debate
Saudi Arabia’s withdrawal comes against a wider debate over the future of the US dollar in international payments. The mBridge infrastructure has drawn scrutiny because it could allow participating economies to conduct cross border transactions without depending as heavily on established dollar based payment channels.
However, Saudi Arabia’s departure should not be interpreted on its own as evidence that Riyadh has abandoned efforts to diversify its international financial relationships. The kingdom has previously shown interest in greater use of non dollar currencies, particularly in its economic relationship with China, while maintaining a long standing dollar peg for the Saudi riyal.
The BIS itself announced its withdrawal from Project mBridge in October 2024, saying the project had reached a stage where the participating central banks could manage it independently. BIS General Manager Agustín Carstens described the move as a natural progression rather than a failure or politically motivated decision.
For the global digital payments industry, the continued development of mBridge demonstrates how central banks are exploring blockchain technology for cross border settlement. Saudi Arabia’s exit reduces the project’s participating central bank footprint, but China, Hong Kong, Thailand and the UAE remain connected to the initiative, while newer commercial applications indicate that the technology is continuing to evolve.
