Saudi Arabia Confirms Withdrawal From mBridge Digital Currency Project

Saudi Arabia has confirmed its withdrawal from the mBridge cross-border payments programme, a blockchain-based initiative originally led by China. The Saudi government stated to the Financial Times that its departure from the project was part of its long-term strategy, although the exit had not been previously reported. The move follows a period of heightened scrutiny in the United States, where officials have raised concerns that the system could be used by participating nations to bypass dollar-dominated payment networks such as Swift.

The mBridge project, which is nearing its commercial launch, utilises blockchain technology to facilitate direct transactions between central banks using digital currencies. This mechanism is designed to reduce the time and costs associated with foreign exchange transactions while diminishing the role of the US dollar as an intermediary currency. Saudi Arabia joined the programme in 2024 as an active participant, alongside China, Hong Kong, Thailand, the United Arab Emirates, and the Bank for International Settlements. The latter initially led the project but has since stepped away from its management role.

When asked whether the Saudi Central Bank faced pressure from the United States to withdraw, a source familiar with the matter told the Financial Times that it would be inaccurate to draw wider inferences from the decision. The source noted that Saudi Arabia’s involvement with mBridge had already been limited. This caution comes amid broader geopolitical tensions, with President Donald Trump threatening BRICS nations with 100 per cent tariffs if they continue to seek alternatives to the dollar. The BRICS group comprises ten major economies, including China, Russia, and India.

Eswar Prasad, a professor at Cornell University and senior fellow at Brookings, observed that many US allies view such initiatives as an economic benefit and a means to lessen reliance on the dollar-dominated global financial system. However, he noted that these nations remain acutely sensitive to US pushback against measures that could reduce the dollar’s importance or boost the role of the Chinese renminbi in international finance. Prasad added that backing off from such initiatives places caution ahead of valour, given the potential advantages of these financial innovations. An earlier report by the Atlantic Council indicated that mBridge had processed 4,047 transactions with a total volume of $55.49 billion as of November 2025, a significant increase from 160 transactions worth $22 million by October 2022.