Bahrain successfully completed digital payments test using JPMorgan Blockchain
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
CBW - External Analyst