Saudi Arabia Exits China-Led mBridge Digital Currency Platform

Saudi Arabia has pulled out of mBridge, a China-led digital currency platform aimed at reducing reliance on the US dollar. According to reports from The Financial Times, Riyadh's departure is seen as a setback for efforts to create an alternative payments system.

The Saudi Central Bank (SAMA) confirmed that it withdrew from mBridge last year, citing its original plan to participate in the project. SAMA joined the platform in 2023 as an observing member and helped build the basic version of the platform in 2024.

mBridge uses blockchain technology to enable central banks to deal with each other directly using their own digital currencies. The platform aims to reduce the time and cost of foreign exchange deals and minimize the role of the dollar as a middle currency.

The US has been wary of mBridge, fearing that countries could use it to circumvent dollar-dominated payment systems such as SWIFT. Washington's pressure on SAMA is unclear, but the bank no longer wants to be publicly linked to the project.