The Central Bank of Saudi Arabia has concluded its participation in the "mBridge" project, a cross-border platform led by China to develop payments using central bank digital currencies. According to a report by Financial Times, Saudi Arabia joined the project as an observer in 2023, participated fully in its development in 2024, and completed a proof-of-concept experiment in May 2025.
In contrast, the Central Bank of Libya has taken steps to strengthen its financial connections with China. In April, Governor Najy Issa and his Chinese counterpart, Pan Gongsheng, agreed to link Libyan commercial banks to China's "CIPS" payment and settlement system. This integration will enable direct transfers and open documentary credits through Chinese banks.
These developments reflect growing interest in establishing direct payment and settlement channels with China. While Saudi Arabia's involvement was through the "mBridge" project, Libya's approach focuses on direct banking connections with the CIPS system. The differing paths highlight varying strategies for enhancing financial ties with China.
The mBridge project aims to facilitate cross-border transactions using central bank digital currencies. Its participants include several countries and financial institutions. By exiting the project, Saudi Arabia may be reevaluating its priorities in digital currency and cross-border payment systems.
Libya's participation in the CIPS system is expected to streamline its international transactions. By directly connecting with Chinese banks, Libyan commercial banks can reduce transaction costs and increase the efficiency of cross-border payments. This move aligns with Libya's efforts to modernize its financial infrastructure.
The growing importance of digital currencies and cross-border payment systems is evident in the increasing number of countries exploring these technologies. As the global financial landscape evolves, countries are seeking to enhance their financial connections and improve the efficiency of international transactions.
The decisions by Saudi Arabia and Libya regarding their involvement in Chinese-led payment systems reflect shifting priorities in the region. While Saudi Arabia has opted to exit the mBridge project, Libya is moving forward with its integration into the CIPS system, demonstrating the diverse approaches countries are taking to develop their financial ties with China.
Key points
- Saudi Arabia has ended its participation in China's mBridge project for cross-border digital currency payments.
- Libya has agreed to link its commercial banks to China's CIPS payment and settlement system.
- The moves reflect the varying strategies countries are adopting to enhance their financial connections with China.
