Saudi Arabia withdrawal from China's participation in the Multilateral CBDC bridge project (mBridge)

According to a report by the Shanghai Financial Times, Saudi Arabia has withdrawn from China's ambitious project for direct cross-border transactions between central banks.

The Saudi Arabian Central Bank (SAMA) had joined mBridge as an official participant in June 2024. According to the Financial Times, citing a statement from the bank, it ended its participation on May 13, 2025 after completing a proof-of-concept and said that withdrawal was already planned.

Background and operation of the project

mBridge was founded in 2021 by the Bank for International Settlements (BIS) Innovation Centre, in collaboration with China's central banks Hong Kong , Thailand and United Arab Emirates , to make cross-border payments faster and cheaper.

Rather than relying on a single stablecoin , the platform allows participating central banks to issue and transact using their respective digital currency s in shared ledgers, covering both cross-border payments and foreign exchange trading scenarios.

BIS transfers and project progress

mBridge continued to develop with the support of BIS, and after reaching a minimum viable product stage in October 2024, the BIS handed over the project to all participating central banks. Agustín Carstens, then-general manager at the Bank for International Settlements (BIS), said that there were no political considerations behind BIS's exit.

However, the project remains a focus of United States policymakers. A 2024 report by the U.S.-China Economic and Security Review Commission noted that mBridge may provide an alternative cross-border settlement system for countries seeking to circumvent the sanctions in the future.

Cointelegraph has reached out to the Saudi central bank for comment, but as of this writing there is no response.

China concerned about stablecoin 's role in cross-border payments

At the same time, with stablecoin 's expanding use globally, China's central bank is increasingly concerned about its potential role in cross-border payments.

In June, Wang Xin, director of the Research Bureau at the People's Bank of China (PBOC), called for stronger monitoring of stablecoin and CBDC in cross-border payments and closer international coordination.

A few months before he made the above remarks, Chinese regulators had already taken steps to restrict the issuance of unlicensed RMB pegged stablecoin and real assets denominated in token (( RWA ), including related activities by overseas entities.