Central Bank of Bahrain Trials JPMorgan Blockchain and Token
Bahrain is the latest country in which U.S. investment bank JPMorgan Chase is exploring blockchain technology, and the country’s central bank is trialing JPMorgan’s proprietary digital currency.
According to an official announcement, the Central Bank of Bahrain (CBB) has partnered with Onyx, the blockchain and cryptocurrency arm of JPMorgan Chase, to successfully complete a digital payments test post January 6.
The trial involved two other major institutions, Manama-based international bank Bank ABC and Bahrain’s national aluminium smelter, Aluminium Bahrain, also known as Alba. The test enabled ABC Bank to make real-time payments to Alba’s U.S. counterparts using JPM Coin, a blockchain-based payment system and dollar-pegged stablecoin.
According to the announcement, the CBB is responsible for overseeing the trial.
CBB Governor Rasheed Al Maraj said the trial was critical for the Bahraini government to address and potentially eliminate existing inefficiencies in the traditional cross-border payments industry.
“We are delighted to announce the success of this test, which is in line with our vision and strategy to leverage emerging and pioneering technologies to develop and enrich the capabilities available to stakeholders in the Kingdom’s financial services sector,” said Al Maraj.
CBB previously disclosed plans to test JPM Coin in May 2021, saying the trial could potentially expand into its central bank digital currency developing.
related: WhatsApp starts testing currency payments with Meta’s Novi wallet
Originally announced in 2019, the JPMorgan coin is Commercial in October 2020.
Investment banks have been aggressive Promote its blockchain technology for global use, cooperated with DBS Bank, the largest bank in Singapore, to pilot a blockchain payment system.JPMorgan Chase previously Offers its Liink blockchain technology State Bank of India to reduce transaction costs and improve cross-border payments.