Saudi Arabia Exits China-Led mBridge Amid US Pressure

Saudi Arabia's quiet exit from China-led mBridge has sent shockwaves through the digital currency landscape. The platform, which enables central banks to conduct cross-border transactions using their own digital currencies, had been seen as a key arena for advancing de-dollarization in international payments.

The move comes after Saudi Arabia became a formal participant in 2024, joining China, Hong Kong, Thailand, the United Arab Emirates, and the Bank for International Settlements. However, SAMA stated that it had only joined as an observer in 2023 and completed its 'proof of concept' in 2024 before exiting.

The exit has raised questions about the governance structure and political sensitivity of mBridge, which employs blockchain technology to shorten foreign exchange transaction times and reduce costs. The platform's ability to bypass traditional correspondent banking networks could also weaken Washington's influence through financial sanctions.