Why Saudi Arabia quit cross-border payments platform led by China
What's the story
Saudi Arabia has withdrawn from mBridge, a China-led cross-border payments platform. The Financial Times reported the development today. The Saudi Central Bank (SAMA) confirmed its withdrawal after completing the proof-of-concept phase in May 2025. Riyadh said this decision was part of its original plan and not necessarily linked to US pressure.
Platform details
What is mBridge?
The mBridge is a multi-central-bank digital currency platform developed by China, Hong Kong, Thailand, the UAE and the Bank for International Settlements (BIS).
The system uses blockchain technology to enable direct cross-border transactions between central bank digital currencies.
It aims to cut down on foreign exchange transaction time and costs and could even lessen reliance on the US dollar as an intermediary currency.
Project timeline
SAMA's participation in mBridge
SAMA joined mBridge as an observer in 2023 and later became a participant in the platform's minimum viable product phase in 2024.
The project was aimed at exploring wholesale central bank digital currencies and their potential to make cross-border payments more efficient.
However, SAMA announced its successful completion of the mBridge proof-of-concept on May 13, 2025, after which it ceased to be a participating member.
Project scrutiny
US pressure led to BIS's exit from mBridge
The mBridge project has drawn attention in Washington for its potential impact on the dollar-based international payments system.
US officials have previously expressed concerns that China could gain influence over standards governing the platform, including security, interoperability and sanctions enforcement.
The BIS also left mBridge in October 2024 amid pressure from Washington to withdraw.
However, former BIS general manager Agustin Carstens said their departure was not politically motivated but a natural progression of the project.
Financial implications
Implications of Saudi Arabia's withdrawal
Saudi Arabia's withdrawal from mBridge adds another layer to the ongoing conversation about digital currencies, cross-border payments, and the dollar's role in global finance.
Cornell University professor and Brookings senior fellow Eswar Prasad told FT that some US allies see projects like mBridge as a way to lessen their dependence on the dollar-based financial system.
These countries are also wary of potential US resistance against initiatives that could diminish the dollar's international standing or bolster China's renminbi.