Saudi Central Bank Leaves China-Backed mBridge CBDC Network After Proof-of-Concept

Saudi Arabia's central bank has ended its participation in mBridge, a China-backed initiative building shared infrastructure for cross-border central bank transactions using digital currencies. The Financial Times reported that the Saudi Arabian Monetary Authority (SAMA) joined as a full participant in June 2024, completed a proof of concept, and formally exited on May 13, 2025. Citing SAMA, the paper said the central bank had intended to conclude its involvement once the proof-of-concept phase was finished. SAMA's departure underscores a recurring feature of CBDC pilots: central bank involvement is often limited to tightly scoped trials shaped by governance requirements and policy risk controls. It also comes as cross-border digital currency networks face growing geopolitical attention. mBridge was launched in 2021 by the Bank for International Settlements (BIS) Innovation Hub working with central banks from China, Hong Kong, Thailand, and the United Arab Emirates. The project aims to make cross-border payments faster and cheaper by allowing participating central banks to issue and transact in their own digital currencies on a shared ledger, rather than relying on a single stablecoin. Development continued under the BIS until October 2024, when the BIS transferred the project to participating central banks after it reached what the BIS described as a "minimum viable product" stage. The BIS has said its exit was not politically motivated, with then BIS General Manager Agustín Carstens previously warning against reading political meaning into the BIS role in such initiatives. In the US, policymakers have flagged potential strategic implications. A 2024 report by the US-China Economic and Security Review Commission said mBridge could eventually offer an alternative cross-border settlement channel for countries seeking to evade US sanctions. Alongside the mBridge debate, China has been sharpening its stance on stablecoins used in cross-border payments. In June, People's Bank of China Research Bureau director general Wang Xin called for closer monitoring of stablecoins and CBDCs in cross-border payments and for stronger international coordination, according to Cointelegraph. The comments followed Chinese restrictions targeting unauthorized issuance of renminbi-pegged stablecoins and tokenized real-world assets, including those issued by foreign entities. What comes next will hinge on whether remaining central bank participants expand mBridge beyond trials, and how US scrutiny and China's evolving monitoring agenda shape the path of cross-border digital settlement infrastructure.