Saudi Arabia Exits mBridge
Saudi Arabia concludes exploratory phase and officially withdraws from the mBridge payment platform.
Anonymous
Key Points
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SAMA’s involvement progressed from observer status in 2023 to full participation in June 2024 before ending after the proof of concept, giving it access to the platform’s development without committing to a permanent operational role.
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India’s central bank was among the institutions that observed mBridge during its BIS-led phase and has separately been examining bilateral and multilateral CBDC arrangements for cross-border payments.
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BIS General Manager Agustín Carstens said the institution had “graduated out” of mBridge because the participating central banks were capable of continuing development independently, stressing that the departure was “not because it was a failure and not because of political considerations.”
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Although SAMA is no longer publicly involved, one person familiar with the situation said the Saudi central bank continues to engage with the project more discreetly.
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The remaining central-bank partners are developing mBridge toward a commercial rollout under a new Hong Kong-based entity; one report said the platform had processed approximately $55.5 billion in transactions by late 2025.
Saudi Arabia has withdrawn from mBridge, a China-backed digital payment platform designed to reduce reliance on the U.S. dollar. Saudi Central Bank said it completed its planned proof of concept on May 13, 2025, and framed its involvement as exploratory rather than a long-term commitment. The move comes as the platform, developed by central banks in China, Hong Kong, Thailand, and the UAE, works toward commercial launch without major Western participants.
PYMNTS reported that Saudi Arabia's exit reflects concerns about using alternative payment systems to bypass dollar-dominated channels like SWIFT. However, sources familiar with the matter said the withdrawal does not necessarily signal broader geopolitical pressure or indicate lasting commitment from Saudi leaders. BIS, which initially helped develop the platform, also ended its active role in 2024, saying participating banks were ready to proceed independently.
Saudi Arabia's Shift From Active Participant to Observer
Saudi Arabia's Central Bank progressed from observer status in 2023 to full participation in June 2024. After roughly one year of active involvement, the bank completed its planned proof-of-concept testing and decided not to continue as an operational member. One source familiar with the matter said SAMA continues to engage with mBridge quietly, despite its public withdrawal from the project.
BIS Steps Back as Central Banks Take Control
The Bank for International Settlements reduced its formal role in mBridge during 2024. BIS General Manager Agustín Carstens said the institution had "graduated out" because participating central banks could handle development independently. Carstens emphasized the departure was "not because it was a failure and not because of political considerations." The move allowed BIS to exit while keeping the project alive under new leadership.
The remaining partners—China, Hong Kong, Thailand, and the UAE—are now developing mBridge toward commercial use through a new Hong Kong-based entity. PYMNTS reported that the platform had processed approximately $55.5 billion in transactions by late 2025. The shift to independent operation suggests the central banks view the project as mature enough to move forward without external institutional support.
Why Other Nations Are Watching mBridge Closely
India's central bank observed mBridge during the BIS-led phase and is separately exploring bilateral and multilateral CBDC arrangements for cross-border payments. WION News noted that many developing nations view alternative payment systems as ways to reduce dependence on dollar-based infrastructure. Saudi Arabia's withdrawal may signal caution about committing fully to China-led platforms, even as interest in alternatives remains high across Asia and the Middle East.
U.S. Dollar Networks Face Long-Term Challenge
mBridge uses distributed-ledger technology to enable faster and cheaper direct settlements between central banks. By reducing reliance on dollar intermediaries, the platform could potentially complicate U.S. sanctions enforcement and weaken dollar-based payment networks. However, PYMNTS sources noted that Saudi Arabia's limited participation does not support broad conclusions about coordinated efforts to displace American financial dominance or indicate sustained pressure on Western allies.
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