Central Bank of Saudi Arabia joins mBridge project for central digital currencies

The Central Bank of Saudi Arabia has joined the mBridge project, a platform that allows countries and financial institutions to test the use of central bank digital currencies (CBDCs) for cross-border bulk payments.

Saudi Central Bank Joins Cross-Border Digital Currency Payments Experiment for Central Banks

Announce The Bank for International Settlements yesterday Wednesday joined the Saudi Central Bank (SAMA) in the mBridge project, which allows countries and financial institutions to test cross-border exchanges of central bank digital currencies (CBDCs).

The mBridge project is the result of an extensive collaboration started in 2021 between the Bank for International Settlements (BIS) Innovation Center and the Bank of Thailand. In addition to the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People's Bank of China and the Hong Kong Monetary Authority. There are also more than 26 observer members in this project.

👈Read more: Is Saudi Arabia preparing to adopt digital currencies in its foreign trade?

The project aims to facilitate cross-border transactions carried out with real-value central digital currencies for the settlement of international trade. It also aims to improve global cross-border payments so that payments are faster, cheaper, more comprehensive and more transparent.

This step taken by the Central Bank of Saudi Arabia is a continuation of its tireless efforts to study and evaluate the capabilities of digital currencies for central banks. As well as to discuss policy issues and challenges, as well as associated legal and technical aspects. This comes as the Kingdom of Saudi Arabia strives to strengthen its position as a leading center of financial innovation in the region.

mBridge is the first advanced cross-border payment system using central bank digital currencies

As a reminder, the mBridge platform was used on January 29 by Sheikh Mansour bin Zayed Al Nahyan, Chairman of the Board of Directors of the Central Bank of the Emirates, to implement the first cross-border payment transaction in digital currency, the currency digital. dirham. Where he sent what it was worth 50 million digital dirhams (equivalent to $13.6 million) in China.

This process helped confirm the possibility of using central bank digital currencies for cross-border wholesale payments. This experience has prompted neighboring countries to consider following the same approach.

👈Read more: Centralized digital currencies Aladdin’s Lamp Cross-border payments

Furthermore, the mBridge project is the first cross-border payment system using central bank digital currencies for financial institutions to reach an advanced stage of development.

According to a report Bank for International Settlements (BIS), almost 90% of the world's central banks are seeking to adopt centralized digital currencies. Among them, 11 countries have launched their central digital currency, 15 are in the pilot phase and 26 are in the development phase.

In conclusion, the mBridge project remains another more advanced step and in line with international and regional developments.Digital Currency Market Rising, while strengthening the leadership role of the Central Bank of Saudi Arabia in the region.