Saudi Arabia Exits China’s mBridge Cross-Border Payments Program

Saudi Arabia has reportedly ceased participation in China's mBridge digital currency/cross-border payments program, according to a report by the Financial Times. The program, which aims to utilize blockchain technology for direct transactions between central banks using digital currencies, has been met with controversy in the U.S. due to concerns about potential circumvention of dollar-dominated payment systems like Swift.

Saudi Arabia, a long-standing U.S. ally in the Middle East, joined the program in 2024 alongside China, Hong Kong, Thailand, the United Arab Emirates, and the Bank for International Settlements. However, the Saudi government has confirmed to the FT that it planned to leave the program since 2025, and this exit has not been previously disclosed.

A source familiar with the matter stated that Saudi Arabia's decision to withdraw was not influenced by pressure from the U.S., as its involvement in mBridge was already limited. The report also mentioned that U.S. President Donald Trump had threatened BRICS countries with 100% tariffs if they continued to seek alternatives to the dollar.

Eswar Prasad, a professor at Cornell University and senior fellow at Brookings, noted that while many U.S. allies view initiatives like mBridge as beneficial for reducing reliance on the dollar, they are also wary of potential U.S. retaliation against measures that could diminish the dollar's significance and bolster the Chinese renminbi's role in international finance.

Nevertheless, Prasad emphasized that backing away from such initiatives could be seen as prudent given the potential advantages of these financial innovations. As of November 2025, mBridge had processed 4,047 transactions totaling $55.49 billion, up from 160 transactions totaling $22 million in October 2022.