Saudi Arabia Joins Central Bank Digital Currency mBridge Project

Saudi Central Bank (SAMA) has joined the Bank for International Settlements’ (BIS) mBridge project as a participant in the Minimum Viable Product (MVP) platform, reported Saudi Press Agency (SPA).

The initiative is a part of SAMA’s purist to create an advanced cross-border payments infrastructure through cooperation with international central banks and worldwide financial institutions.

“Saudi Arabia is joining China and the UAE as a “full participant,” said BIS, a global central bank umbrella organization which oversees the mBridge project .

The MVP platform is a multi-country central bank digital currency (CBDC) system.

It aims at facilitating cross-border payments and settlement between commercial banks.

Launched in 2021, the CBDC initiative is primarily designed to test cross-border payments in digital currencies provided by central banks of China, Hong Kong, Thailand and the UAE.

SAMA has been evaluating the feasibility of using wholesale CBDC to foster the performance of cross-border payment between banks.

The top economies of Group of Twenty (G20) unanimously agreed on a roadmap to boost global cross-border payments during Saudi Arabia’s presidency in October 2020.

The roadmap focused on making financial transactions cheaper, faster, more inclusive, and more transparent by benchmarking the proposed local designs or the digital currency of several central banks.

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