Bahrain is the latest nation to explore US investment bank JPMorgan's blockchain technology, and the country's central bank is testing JPMorgan's proprietary digital currency.
The Central Bank of Bahrain (CBB) successfully completed a digital payment trial in collaboration with Onyx, JPMorgan's blockchain and cryptocurrency unit, according to an official announcement. published on January 6.
The lawsuit involved two other major institutions, the Manama-based international bank Bank ABC and Bahrain's national aluminum smelter Aluminum Bahrain, also known as Alba. The test allowed ABC Bank to settle payments in real time to Alba's counterparties in the United States using JPM Coin, a blockchain-based payment system and a stablecoin pegged to the US dollar.
According to the announcement, the CBB was responsible for overseeing the trial.
CBB Governor Rasheed Al Maraj said the test has been crucial for the Bahraini government to address and potentially eliminate existing inefficiencies in the traditional cross-border payments industry.
"We are pleased to announce the success of this trial, which is in line with our vision and strategy to develop and enrich the capabilities provided to stakeholders in the financial services sector in the Kingdom using pioneering and emerging technologies," said Al Maraj.
The CBB previously revealed plans to test JPM Coin in May 2021, stating that the test could potentially extend to your central bank digital currency developing.
Related: WhatsApp begins to test payments in currencies with the wallet Novi de Meta
Originally Announced in 2019, JPM Coin was commercially launched in October 2020.
The investment bank has been actively promoting its blockchain technology for global use, in partnership with Singapore's largest bank, DBS, to test a blockchain payment system. JPMorgan formerly provided its Liink blockchain technology to the State Bank of India to reduce transaction costs and improve cross-border payments.
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