Saudi Central Bank Exits China-Backed mBridge CBDC Project

Saudi Arabia’s central bank confirmed it ended participation in the mBridge central bank digital currency project on May 13, 2025 after completing a proof of concept. The bank joined mBridge in June 2024 and said the exit was planned once the proof-of-concept work concluded.

mBridge was launched in 2021 by the Bank for International Settlements Innovation Hub together with the central banks of China, Hong Kong, Thailand and the United Arab Emirates. The platform allows participating central banks to issue and settle in their own digital currencies on a shared ledger for cross-border payments and foreign-exchange transactions, rather than relying on a single stablecoin.

The BIS continued development of the platform through October 2024, when the project reached a minimum viable product and governance was transferred to the participating central banks. Then-BIS general manager Agustín Carstens described the BIS departure as not politically motivated.

The Saudi central bank characterized its departure as the planned end of its participation and did not indicate further involvement in the initiative. The bank did not respond to requests for comment.

A 2024 report by the US-China Economic and Security Review Commission flagged that a project like mBridge could be used as an alternative cross-border settlement system by states seeking ways to avoid US sanctions. That assessment has drawn attention from policymakers outside the group of participants.

Chinese authorities have also engaged on related issues. In June, the director general of the People’s Bank of China Research Bureau, Wang Xin, called for closer monitoring of stablecoins and central bank digital currencies in cross-border payments and urged greater international coordination. Chinese regulators have tightened rules on unauthorized renminbi-pegged stablecoins and on tokenized real-world assets issued by foreign entities in recent months.

The mBridge design aims to speed cross-border transfers and lower costs by enabling direct settlement in participating central bank digital currencies. After the handover from the BIS, participating authorities have continued development and testing via their respective central bank channels.