Industry Odisha Bureau, Sep 21: Saudi Arabia has withdrawn from Project mBridge, the Financial Times reported. The Saudi Central Bank, SAMA, says the exit followed a planned proof-of-concept phase.
Saudi Arabia has withdrawn from Project mBridge, the Financial Times reported. The Saudi Central Bank, SAMA, confirmed it ceased participation. That followed the formal completion of the proof-of-concept phase on May 13, 2025. Riyadh says the withdrawal was part of its original plan.
Saudi Arabia says exit was planned
Saudi Arabia joined mBridge in 2024. SAMA says its participation ended after the proof-of-concept phase. Riyadh describes that as the original plan. That explanation should not be dismissed. Riyadh did not clarify whether US pressure played any role. The reason cannot be independently attributed to Washington.
How mBridge changes cross-border payments
mBridge is a wholesale central bank digital currency, or CBDC, platform. It is not a cryptocurrency. It uses blockchain technology. Central banks can transact directly through digital currencies. That could reduce transaction costs and payment friction. It could also lessen dependence on traditional payment networks.
China link draws geopolitical attention
Saudi Arabia joined China, Hong Kong, Thailand and the UAE. The Bank for International Settlements was also involved. The platform is therefore not exclusively Chinese. Even so, Washington has scrutinised it. Concerns centre on bypassing Western payment networks such as SWIFT. SWIFT is a financial messaging network, not a currency.
Dollar and renminbi questions remain
Payment infrastructure and reserve currencies are different matters. Alternative settlement rails do not establish de-dollarisation. Participants have not been reported to abandon dollar reserves. US concerns reportedly include a bigger renminbi role. That is a geopolitical worry, not an established outcome. Currency adoption depends on wider economic and financial factors.
US allies face a balancing act
Eswar Prasad of Cornell University and the Brookings Institution offered analysis. He is quoted in the FT report. US allies see such projects as beneficial domestically. Yet they remain sensitive to US pushback, he suggested. Those concerns involve the dollar’s role and the renminbi’s expansion. His view is interpretation, not government policy.
Geopolitical context does not establish cause
The report emerged amid Saudi-Houthi tensions. The supplied report says Houthis launched an offensive against Saudi Arabia. It also reports contacts between Mohammed bin Salman and Donald Trump. It reports a confidential US-Houthi meeting in Muscat. These claims come from that report and are not independently verified. Nothing supplied links the conflict to the mBridge exit.
The debate extends beyond Saudi Arabia
The FT report links wider wariness to the freezing of Russian assets. Cross-border CBDC systems raise wider questions. They involve efficiency, interoperability and monetary sovereignty. They also touch sanctions exposure and currency influence. Saudi Arabia’s exit does not settle those questions. Digital settlement infrastructure remains a live policy debate.
