SAMA Joins BIS mBridge Project to Enhance Cross-Border Payments

KSA, 6 June, 2024 : The Saudi Central Bank (SAMA) has taken a significant step towards bolstering cross-border payments infrastructure by joining the Bank for International Settlements' (BIS) mBridge project as a participant in the Minimum Viable Product (MVP) platform.

The MVP platform, a multi-central bank digital currency (Wholesale CBDC) system, aims to streamline cross-border payments between commercial banks across different jurisdictions. It marks the first multi-wCBDC platform to advance to the MVP phase of development.

SAMA's involvement in the project follows its commitment to exploring innovative solutions for cross-border payments. Through the analysis of policy-related issues, SAMA has been assessing the feasibility of utilizing wholesale CBDC to enhance the efficiency of cross-border payment and settlement processes among commercial banks.

The initiative aligns with the objectives set forth by the G20 during Saudi Arabia's presidency in October 2020. The G20 roadmap seeks to enhance global cross-border payments, aiming for cheaper, faster, more inclusive, and transparent transactions. As part of this roadmap, central banks were urged to evaluate proposed local designs for digital currencies and experiment with their use in settling cross-border payments.

SAMA's participation in the mBridge project underscores its commitment to advancing financial innovation and fostering more efficient and inclusive cross-border payment systems.

Source : www.sama.gov.sa