Saudi Arabia exits China-backed mBridge CBDC project: FT
Saudi Arabia has left mBridge, a cross-border CBDC platform that has drawn scrutiny from US policymakers, according to the Financial Times.
Saudi Arabia has withdrawn from mBridge, a cross-border central bank digital currency (CBDC) platform backed by China, according to a report by the Financial Times. The kingdom's exit marks a significant shift in the project's composition, as Saudi Arabia had joined mBridge only in 2023 as a full participant alongside founding members China, Hong Kong, Thailand, and the United Arab Emirates.
mBridge is a multi-central bank digital currency platform developed under the auspices of the Bank for International Settlements (BIS) Innovation Hub. The project is designed to facilitate faster and cheaper cross-border payments by allowing participating central banks to transact directly using digital currencies. The BIS itself stepped back from the project in 2024, citing concerns over its geopolitical dimensions. The platform has drawn increasing scrutiny from US policymakers, who have raised concerns that it could potentially be used to circumvent Western financial sanctions.
Saudi Arabia's departure is expected to raise further questions about mBridge's long-term viability and its ability to attract broad international participation. The exit of a major Gulf economy with deep ties to both Western financial systems and the US dollar signals the geopolitical sensitivities surrounding China-aligned financial infrastructure projects.
Observers will be watching whether additional member nations follow Saudi Arabia's lead, and whether mBridge's remaining participants move forward with expanding the platform's capabilities amid continued regulatory and political pressure from Western governments.
Source: Cointelegraph
