Saudi Arabia Withdraws from China-Backed mBridge CBDC Project
The Saudi Arabian Monetary Authority (SAMA) has officially withdrawn from the China-backed mBridge project, aimed at enabling central banks to transact digital currencies directly for faster, cheaper cross-border payments. Joining as a full participant in June 2024, SAMA concluded its involvement after completing a proof of concept on May 13, 2025, marking a strategic step following evaluation of the initiative.
Origins and Participants of the mBridge Project
mBridge was initiated in 2021 as a collaboration between the Bank for International Settlements Innovation Hub and the central banks of China, Hong Kong, Thailand, and the UAE. Its goal was to facilitate faster and cheaper cross-border payments by enabling central banks to issue and transact in their own digital currencies on a shared ledger, instead of relying on a single stablecoin.
Until October 2024, the project was managed under BIS supervision. Upon reaching a minimum viable product milestone, authority was transferred to the involved central banks. At that time, BIS General Manager Agustín Carstens emphasized that the organization's withdrawal was not influenced by political considerations.
Saudi Arabia’s Participation and Withdrawal
Saudi Arabia's central bank, SAMA, became a full participant in June 2024 and conducted a proof of concept, officially ending its participation on May 13, 2025. According to the Financial Times referencing a statement from SAMA, the withdrawal was planned and followed completion of internal evaluations.
Cointelegraph reached out to SAMA for comment but had not received a response by the time of publication.
International Concerns and US Scrutiny
The mBridge initiative faced scrutiny from US policymakers amid concerns over its potential to circumvent American sanctions. A 2024 report by the US-China Economic and Security Review Commission highlighted the possibility that mBridge could evolve into an alternative cross-border settlement system used by countries seeking to avoid reliance on the US dollar-based financial system.
China’s Emphasis on Digital Currencies and Stablecoins
Concurrently, the People's Bank of China (PBOC) has increased its focus on the role of central bank digital currencies (CBDCs) and stablecoins in cross-border payments. In June, PBOC Research Bureau director Wang Xin stressed the importance of enhanced oversight and international cooperation regarding these technologies.
Prior months saw Chinese regulatory tightening on unauthorized issuance of renminbi-pegged stablecoins and tokenized real-world assets, particularly by foreign entities, signaling the government's intent to control digital asset proliferation within and beyond its borders.
Why it matters
Saudi Arabia’s withdrawal from the ambitious mBridge CBDC project highlights the complexities and significant challenges inherent in developing central bank digital currencies for cross-border payments. This move may affect the pace at which new digital financial infrastructure is adopted in the global economy. Additionally, scrutiny from US policymakers underscores the geopolitical dimension tied to digital currency innovation and the risks of sanction evasion, adding political pressure to international payment system developments. China’s heightened focus on stablecoins and regulatory tightening also signals a shift toward more controlled and coordinated global digital financial ecosystems.
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