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Saudi Arabia Exits China's Dollar-Challenging Payment System, Delivering Blow to Beijing
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News18•20-09-2026, 12:24
Saudi Arabia Exits China's Dollar-Challenging Payment System, Delivering Blow to Beijing
- •Saudi Arabia has withdrawn from China's mBridge payment system, a move that comes just before Chinese President Xi Jinping's visit to the US.
- •China developed mBridge, a blockchain-based system, to reduce reliance on the US dollar and challenge international payment systems like SWIFT.
- •The system initially included China, Hong Kong, UAE, Thailand, and Saudi Arabia, but Saudi Arabia has now opted out.
- •mBridge aims to facilitate cheaper and faster cross-border payments between central banks using digital currency.
- •Despite Saudi Arabia's exit, the other participating countries remain part of the project, and the system continues to operate.
Key Questions Answered
China's mBridge is a blockchain-based cross-border payment system created to reduce dependence on the US dollar and serve as an alternative to SWIFT, facilitating cheaper and faster payments between central banks using digital currency.
The mBridge payment system originally included China, Hong Kong, the UAE, Thailand, and Saudi Arabia.
Saudi Arabia decided to withdraw from the mBridge payment system, signaling where its alliances lie between America and China, though the other four member countries remain part of the ongoing project.
