Saudi Arabia has recently become a member of the mBridge project, aiming to enhance cross-border payments through the use of central bank digital currencies (CBDCs). The Saudi Central Bank (SAMA) has officially announced its participation in the mBridge initiative, which is expected to facilitate increased local currency transactions in oil trade between China and Saudi Arabia.
The mBridge project, an international digital currency platform initiated by the Bank for International Settlements, has reached a significant milestone by entering the minimum viable product (MVP) stage. This development allows private sector firms to propose innovative solutions and applications to further develop the platform and showcase its full potential.
As the sixth full participant in the mBridge project, the Saudi Central Bank joins founding central banks such as the Hong Kong Monetary Authority, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People’s Bank of China, and the Bank of Thailand. Additionally, over 26 official institutions, including the International Monetary Fund, the World Bank, and the European Central Bank, are participating as observers.
In a notable achievement earlier this year, the United Arab Emirates and China successfully conducted their first cross-border CBDC transaction, with a total value of $13.6 million using digital dirham and digital yuan. The transaction took place during the Central Bank of UAE’s 50th anniversary celebration, where UAE Vice President and Deputy Prime Minister Mansour bin Zayed Al Nahyan and Chinese Ambassador to the UAE Zhang Yiming were in attendance.
This groundbreaking transaction marked the introduction of digital currencies in multilateral financial exchanges, following the successful completion of the Bridge’s phase one pilot in 2022. The event showcased the potential of cross-border payments and the use of CBDC platforms, setting the stage for further collaboration and advancements in the field.
