Saudi Arabia Exits China's mBridge Payment Platform

Saudi Arabia has quietly exited China's mBridge digital payment platform, a move that represents a setback for Beijing's efforts to promote alternatives to the U.S. dollar in international finance. The mBridge platform, launched in 2021, utilizes blockchain technology to enable central banks to conduct cross-border transactions using central bank digital currencies (CBDCs) directly, bypassing traditional correspondent banking systems and aiming to reduce reliance on the dollar-dominated SWIFT network. Initially, the platform involved the central banks of China, Hong Kong, Thailand, the United Arab Emirates, and the Bank for International Settlements (BIS), often referred to as the "central bank for central banks." Saudi Arabia's central bank, SAMA, joined mBridge in 2023 as an observing member under the umbrella of the BIS, as part of its research into CBDCs. The kingdom then participated in a proof of concept (PoC) for the platform in 2024. According to a statement from SAMA, the central bank successfully completed its mBridge PoC on May 13, 2025, and following this completion, it is "no longer a participating member of mBridge." Another source indicated that SAMA no longer wished to be publicly associated with the project. When questioned about potential U.S. pressure influencing the withdrawal, a source stated it would be "inaccurate to draw any wider inference." This development follows the BIS's departure from mBridge in October 2024, which occurred amidst reports of U.S. lobbying efforts for the BIS to exit. However, the BIS maintained that it had "graduated out" of the project and denied any political motivations behind its withdrawal. Saudi Arabia's initial involvement was considered a significant endorsement for mBridge, given the kingdom's pivotal role in the "petrodollar" system. This system, established by a 1974 agreement, mandates that oil sales are priced in U.S. dollars and that surplus revenues are invested in U.S. assets. The widespread adoption of the petrodollar has contributed to the U.S. dollar's dominance, with approximately 90% of global transactions currently conducted in dollars. The interconnectedness of oil with global manufacturing and transportation creates a natural incentive for supply chains to operate in dollars. The mBridge initiative, also known as the "Project Dunbar" in its earlier stages, aims to create a more efficient and potentially less politically influenced payment infrastructure for international trade, particularly for countries seeking to diversify their financial relationships away from U.S. dollar hegemony. The withdrawal of a key player like Saudi Arabia, central to the petrodollar system, underscores the complexities and geopolitical considerations involved in challenging the established global financial order.