Saudi Arabia Ends mBridge Digital Currency Participation

Saudi Arabia has stopped participating in mBridge, a central bank digital currency project coordinated by China. The Saudi Central Bank confirmed it concluded its technical testing phase in May 2025. This network uses blockchain technology to enable direct cross-border payments between central banks.

The exit removes Riyadh from a system designed to bypass US dollar-dominated payment rails like SWIFT. According to reports from the Financial Times, the decision followed the completion of planned technical trials. The move signals a shift in the kingdom's approach to international digital payment infrastructure.

Geopolitical Pressures Shaped Decision

Sources indicate Riyadh sought to minimize public attention to the project. Avoiding potential US political pressure was a key factor in the decision to withdraw. An insider stated that the Saudi Central Bank continues to work with the program quietly despite the official exit.

Strategic Shift Away From Dollar

Eswar Prasad, a professor at Cornell University, notes that nations use such tools to reduce reliance on the US dollar. The mBridge initiative aimed to provide an alternative to existing Western-led financial systems. By exiting, Saudi Arabia distances itself from this specific multilateral effort.

Market Implications For Payment Networks

The departure weakens the coalition behind the digital currency bridge. It underscores the fragmented nature of global efforts to create alternative payment systems. Market observers will watch for further moves by other participants in the network. The story was reported by GN markets/fx (en-US).