Saudi Arabia Withdraws from China-Led Digital Currency Project
Saudi Arabia has withdrawn from mBridge, a China-led international digital currency project aimed at reducing reliance on the US dollar in international payments, according to the Financial Times.
Sajid Ali | September 20, 2026 | 12:30 PM
The Saudi Central Bank, SAMA, confirmed its pilot participation concluded in May 2025. While its involvement was planned from the start, Saudi Arabia officially ceased to be a participant after the successful pilot phase.
mBridge leverages blockchain technology to enable direct transactions between central banks in their respective digital currencies, potentially reducing transaction times and costs while eliminating the need for the US dollar as an intermediary.
Saudi Arabia initially joined the project as an observer under the Bank for International Settlements (BIS) in 2023 and actively participated in its development alongside China, Hong Kong, Thailand, and the United Arab Emirates in 2024.
The Financial Times reported that mBridge has sparked controversy in the United States, where concerns exist about its potential as an alternative to the SWIFT international payments system dominated by the US dollar. However, a source familiar with the matter stated that Saudi Arabia's participation was limited from the beginning and that the decision to withdraw should not be interpreted more broadly.
The BIS also withdrew from the project in October 2024, with reports suggesting US pressure played a role. Augustin Carstens, then-head of the BIS, however, attributed the withdrawal to the project's successful handover to central banks, rather than failure or political factors.
US President Donald Trump previously warned BRICS nations about potential tariffs if they pursued alternatives to the US dollar. Professor Eswar Prasad from Cornell University and Brookings Institution noted that while some US allies view such projects as beneficial, they are also sensitive to US opposition and China's growing influence in the global financial system.
Macao's monetary authority joined mBridge this year and launched the system in June.