Saudi Arabia mBridge Exit Highlights Realities of Cross-Border Payment Diversification

Saudi Arabia's withdrawal from mBridge, the multilateral central bank digital currency (CBDC) platform involving mainland China, Hong Kong, Thailand, and the United Arab Emirates, highlights the structural dynamics of cross-border financial diversification, according to an analysis by finance professional Matteo Giovannini published in the South China Morning Post. The Financial Times previously reported that the Saudi Central Bank (SAMA) completed its mBridge proof of concept in May 2025 and ceased participating thereafter. SAMA had joined as a full participant in 2024 when the platform reached its minimum viable product stage.

mBridge utilizes central bank digital currencies and distributed ledger technology to enable direct cross-border payments and foreign exchange settlements between participating financial institutions. For China, the platform provides infrastructure where the renminbi can expand its role in international transactions, while participating partners gain payment efficiency and flexibility without necessarily seeking to displace the US dollar.

The article notes that SAMA's exit does not indicate the collapse of mBridge, which has continued to develop following the departure of the Bank for International Settlements (BIS) in October 2024. The BIS previously concluded its direct involvement after determining the platform could operate independently among member central banks, while emphasizing that mBridge was not designed to evade sanctions. In June, the Monetary Authority of Macao activated the platform, with three banks conducting 23 cross-border transactions involving mainland China, Hong Kong, and the UAE on the first day.

Giovannini argues that Saudi Arabia's decision illustrates the dual reality facing Gulf economies: while strengthening commercial and investment ties with China, Riyadh remains anchored to the US dollar through its currency peg, energy markets, and Western financial linkages. Consequently, alternative payment systems offer operational diversification, but adoption remains heavily shaped by existing network effects, liquidity depth, and broader geopolitical relations with the United States.