Saudi Arabia's central bank has officially become a full participant in Project mBridge, an ambitious cross-border initiative exploring the use of central bank digital currencies (CBDCs) for international trade. The announcement was made by the Switzerland-based Bank for International Settlements (BIS) on Wednesday.

Project mBridge, launched in 2021, is a collaborative effort involving the BIS Innovation Hub and the central banks of China, Hong Kong, Thailand, and the United Arab Emirates (UAE). The project's goal is to test the feasibility of using CBDCs for instantaneous cross-border trade and other payments via the project's dedicated blockchain, the mBridge Ledger.

The BIS also revealed that Project mBridge has reached the minimum viable product (MVP) stage after three years of development. To further advance the platform, the BIS has invited private sector financial firms to propose new solutions and use cases that could enhance the platform's capabilities and demonstrate its full potential.

In addition to the six full participants in mBridge, the project has attracted significant interest from 27 other official entities, including the International Monetary Fund (IMF), the World Bank, and the central banks of Norway, South Korea, and Turkey. These entities have signed on as observers, providing them with access to a "sandbox" environment for experimenting with the technology.

The project has also garnered involvement from major global financial institutions, such as Goldman Sachs, HSBC, and China's six largest state-owned banks, highlighting its potential to reshape the landscape of international trade and cross-border payments.

As Project mBridge progresses, the inclusion of Saudi Arabia and the active participation of various central banks and financial institutions underscore the growing interest in and commitment to exploring the capabilities of CBDCs on a global scale.