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Bahrain successfully completed digital payments test using JPMorgan Blockchain
Feb, 15 2022
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As per an
official announcement, the Central Bank of Bahrain (CBB) has successfully completed the digital payments test in which it transferred funds across borders using JPMorgan’s
blockchain and cryptocurrency unit Onyx. The central bank had a goal for creating
safe and efficient settlement solutions for customers and the test was
conducted to fulfill that.
In May 2021, CBB
disclosed its plan to test out JPM Coin referring that the trial could extend
to its central bank digital currency development. CBB, so as to prepare to
launch its digital currency, did a transfer fund working in partnership with Bank
ABC which is an international bank, located in Manama. Another prominent
institution involved in the trial was Bahrain national aluminum smelter
Aluminium Bahrain, also known as Alba. Through the test Bank, ABC could set
real-time payments to Alba counterparts in the United States using JPM Coin, a
blockchain-based payments system and stablecoin pegged to the United States
dollar. JPMorgan Chase's investment bank, JPMorgan, is announcing the launch of
a digital currency in Bahrain that is based on blockchain technology. in
October 2020 JPM Coin was commercially launched although the announcement was done
in 2019.
CBB governor,
Rasheed Mohammed Al Maraj said regarding the central bank’s ongoing tests “We at
the Central Bank of Bahrain are extremely pleased to announce the success of
this test which aligns with our vision and strategy to continually develop and
enrich the capabilities extended to the stakeholders within our financial
services sector in the Kingdom using advanced and leading emerging
technologies”.
Al Maraj also
said that CBB will be making attempts to reduce the inefficiencies and
difficulties in the traditional cross-border payments area. CBB is getting
ready for central bank digital currency (CBDC) which can be a safe and
efficient solution for the problem. However, the central bank did not provide further
details regarding the expected time to launch CBDC or if there are any plans to
conduct more tests.
Till now, the central
bank from Chinese and Nigeria have launched their CBDCs. Other countries still
have their CBDCs at different stages of developing their digital currencies
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Indrani bose
CBW - External Analyst
INDIA
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