Saudi Arabia reportedly withdraws from China-led digital currency project

Saudi Arabia has reportedly withdrawn from a China-led digital currency initiative as it seeks to avoid growing pressure from the United States, according to a report published by the Financial Times.

The British newspaper reported that Saudi Arabia has stepped back from the mBridge digital currency network, a project designed to facilitate direct digital currency transactions between participating central banks.

According to the report, the Saudi Central Bank has confirmed that it has stopped participating in the mBridge network. The development comes after Saudi Arabia had previously taken part in the project’s experimental phase.

The Financial Times reported that the Saudi central bank completed the pilot phase of its involvement in mBridge in May 2025. The project was established to explore a new system for cross-border payments using central bank digital currencies.

The mBridge network is led by China and involves cooperation among central banks from several countries. Its broader objective is to allow participating nations to conduct digital currency transactions directly with one another, potentially reducing reliance on traditional international payment channels.

Unlike conventional cross-border transactions, which often involve the US dollar and correspondent banks, the mBridge system is designed to enable direct transfers between participating financial institutions.

The project has attracted international attention because of its potential to provide an alternative mechanism for cross-border payments. It has also been viewed by some analysts as a possible alternative to the dominance of the US dollar and the SWIFT international payments system.

The reported Saudi withdrawal therefore carries significance for the future development of the digital payments network, particularly as countries explore ways to make international transactions faster and less dependent on traditional financial infrastructure.

The mBridge project is part of broader efforts by central banks to develop central bank digital currencies, commonly known as CBDCs. These digital currencies are issued and backed by central banks and differ from privately issued cryptocurrencies such as Bitcoin.

The initiative focuses specifically on improving cross-border payments, an area that has traditionally involved multiple financial institutions, different currencies and relatively complex settlement procedures.

The Financial Times report suggests that Saudi Arabia’s decision to stop participating in the network could also reflect the geopolitical pressures surrounding alternative international payment systems.

The development comes at a time when major economies are increasingly examining ways to reduce transaction costs and strengthen control over cross-border financial infrastructure. China has been among the countries actively developing digital payment technologies and expanding the international use of its digital currency infrastructure.

The mBridge initiative has consequently been closely watched because of its potential implications for the global financial system.

However, the reported Saudi decision does not necessarily mean that Riyadh has abandoned efforts to develop digital payment technologies or explore alternatives for improving cross-border transactions. The move specifically concerns its participation in the mBridge network, according to the report.

The Saudi Central Bank’s reported withdrawal could now raise questions about the future direction of the project and the extent to which other countries will continue participating in China-led digital payment initiatives.

The development also highlights the growing intersection between financial technology and geopolitics, as central banks around the world consider how digital currencies could reshape international payments and reduce dependence on existing financial networks.