Saudi Arabia’s Quiet Exit From mBridge Signals New De‑Dollarization Setback

Saudi Arabia has quietly withdrawn from China’s mBridge digital‑payment network, a move analysts say deepens Beijing’s de‑dollarization dilemma.

mBridge loses Saudi member

The Kingdom’s central bank, SAMA, confirmed that its proof‑of‑concept trial concluded on 13 May 2025, and that it will no longer be a participating member.

“As planned, SAMA successfully completed its mBridge proof of concept. Following the completion, SAMA is no longer a participating member of mBridge,” the bank said.

Initial enrollment in 2023, under the BIS umbrella, had been touted as a breakthrough for the platform, which launched in 2021 to let central banks transact via blockchain, bypassing SWIFT.

China, Hong Kong, Thailand and the United Arab Emirates remain on board, while the BIS exited in October 2024 after a reported U.S. lobbying effort—though the BIS claims a “graduated out” decision.

Transaction volume on mBridge has surged, reaching ↑ $55 billion this year, a ↑ 2,500‑fold rise since 2022, according to an Atlantic Council briefing.

Saudi Arabia’s departure is a symbolic loss: the kingdom underpins the historic petrodollar regime established in 1974, when Riyadh agreed to price oil in dollars and recycle surplus funds into U.S. assets.

Analysts note that the petrodollar’s grip on roughly 90 % of global trade is reinforced by oil’s central role in manufacturing, transport and even chip‑making inputs like helium.

Recent sanctions on Russia and the looming Reuters‑covered tensions have spurred nations to hedge against dollar exposure—boosting gold reserves and prompting some to price oil in yuan, as Iran and Russia already do.

Deutsche Bank warns that a shift toward a “petroyuan” could emerge if Iran forces regional oil payments in Chinese currency, a scenario that would further strain the dollar’s hegemony.

Beijing continues to press yuan‑swap agreements and promote yuan‑denominated trade with key partners, seeking incremental erosion of dollar dominance rather than an outright overthrow.

Despite setbacks, mBridge added Macau as a new participant, suggesting the platform’s resilience.pandemic‑era supply‑chain disruptions have only heightened interest in alternative settlement rails.