The Saudi Central Bank (SAMA) has recently announced its active participation in the mBridge project, an initiative steered by the Bank for International Settlements (BIS), which is poised to revolutionize the infrastructure of cross-border payments. This collaboration involves various international financial organizations and central banks working together to enhance global payment systems.
At the core of this initiative is the Minimum Viable Product (MVP) platform—a groundbreaking multi-central bank digital currency (wCBDC) system designed to streamline transactions between commercial banks across differing jurisdictions. SAMA has proudly declared that this platform is the first of its kind to enter the MVP stage of development in the realm of wCBDC.
With a strong commitment to innovation, SAMA has been meticulously researching the benefits and practicality of employing wholesale CBDCs. The focus is on scrutinizing policy-related issues to ascertain the potential of wholesale CBDCs in augmenting the efficiency of cross-border payments and settlements between commercial banks.
In an effort to enhance worldwide payment operations, during its presidency in October 2020, Saudi Arabia led the G20 in formulating a strategic roadmap. This framework sets out to transform the global payments landscape, making it more cost-effective, swift, inclusive, and transparent. The roadmap also includes provisions for the critical evaluation of various central banks’ proposed digital currency designs and their experimental application in settling cross-border payments.