Flags of China and Saudi Arabia are seen in this picture, in Riyadh, Saudi Arabia, December 7, 2022. REUTERS
Saudi Arabia has withdrawn from the China-led mBridge digital currency initiative aimed at developing alternative payment systems to the US dollar, the Financial Times reported on Sunday.
The Saudi Central Bank confirmed to the newspaper that it was no longer a participating member after completing its planned proof-of-concept phase in May, 2025. SAMA initially joined as an observer in 2023 before participating in pilot operations in 2024.
The blockchain-based platform enables central banks to transact directly in their local digital currencies, bypassing intermediary dollar-clearing systems like Swift.
The Bank for International Settlements stepped back from the initiative in October 2024, handing full control to the regional central banks that included the People’s Bank of China, Hong Kong Monetary Authority, as well as those in Thailand, United Arab Emirates, and Macau.
A person familiar with the matter told the FT that it would be “inaccurate to draw any wider inference” of US pressure from the exit given Riyadh’s limited initial scope. However, a separate source told the paper that while SAMA wanted to end its public involvement, it continues to engage discreetly.
Source | The Standard
