Saudi Arabia Joins China-Led CBDC Initiative to Revamp Oil Trade

• Saudi Arabia joins the mBridge project as a full participant, fostering an innovative cross-border payments infrastructure.
• Experts anticipate that the oil producer may leverage the CBDC project for oil trade payments.
• The program intends to lessen the use of US Dollars in oil trade between China and Saudi Arabia.

In a major development, Saudi Arabia has joined mBridge, a central bank digital currency (CBDC) initiative focused on international trade. The Saudi Arabian central bank, SAMA, aims to build a more innovative infrastructure for cross-border payments through this new venture.

This oil-rich nation’s adoption of CBDC has experts speculating that it may use the project to facilitate oil trade payments. With 26 observers including the IMF, World Bank, and ECB, Saudi Arabia becomes the sixth official member of mBridge.

According to a June 5th Reuters report, Saudi Arabia’s participation in the mBridge project, led by China, marks the initial step. The program aims to reduce reliance on the US dollar for China-Saudi Arabia oil trade.

Launched in 2021, the mBridge project is a collaborativ…

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