Clanity Blog News & Events
Clanity Blog News & Events

Saudi Arabia Joins mBridge Project to Boost Cross-Border Payments with CBDCs

12.06.24 06:08 AM By Clanity Team

Saudi Arabia has recently announced its participation in the mBridge project, aimed at enhancing cross-border payments through the use of central bank digital currencies (CBDCs). This move by the Saudi Central Bank (SAMA) is expected to facilitate increased local currency transactions in oil trade between China and Saudi Arabia, according to a report by China Daily.

Platform Advances to MVP Stage

The project, an international digital currency platform initiated by the , has reached a significant milestone by achieving the minimum viable product (MVP) stage. The founding central banks of the project include the , the , the , and the .

This development opens the doors for private sector firms to propose innovative solutions and applications to further enhance the platform and showcase its full potential. The transition to the MVP stage means that commercial banks within the six participating member countries can now utilize the platform for real cross-border payment transactions.

Key Participants and Observers

Apart from joining as the sixth full participant in the project, more than 26 official institutions, including the , the , and the , are actively engaged as observers, as per the .

UAE's Groundbreaking Cross-Border Payment

Earlier this year, the and successfully conducted their first cross-border transaction, amounting to $13.6 million, utilizing digital dirham and digital yuan. This milestone transaction took place during the Central Bank of UAE's 50th-anniversary celebration, where the initiative showcased the practical use of digital currencies in multilateral financial exchanges.

The event saw the presence of UAE Vice President and Deputy Prime Minister and Chinese Ambassador to the UAE . Mansour and Zhang collaborated to kickstart the cross-border payment process and introduce the platform, marking a significant step forward following the successful phase one pilot of the project in 2022.

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice.

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