Bahrain’s central bank initially announced the testing of JPM Coin in May 2021.
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Bahrain is the latest country to explore blockchain technology by US investment bank JPMorgan, with the country’s central bank testing JPMorgan’s proprietary digital currency.
The Central Bank of Bahrain (CBB) has successfully completed a digital payments trial in partnership with JPMorgan’s cryptocurrency and blockchain unit, Onyx, according to an official announcement published on May 6. first.
The trial involved two other major institutions, the international bank based in Manama, ABC Bank, and Bahrain’s national aluminum smelter Alba, also known as Alba. Pilot allows ABC Bank to settle real-time payments to Alba partners in the US using JPM Coin, a blockchain-based payments system and stablecoin pegged to the US dollar .
According to the announcement, CBB is responsible for supervising the trial.
CBB Governor Rasheed Al Maraj said that the test has important implications 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 aligns with our vision and strategy to develop and enrich the capabilities offered to stakeholders in the translation sector. financial services in the Kingdom using pioneering and emerging technologies,” said Al Maraj.
CBB previously revealed its plans to test JPM Coin in May 2021, claiming that the test could extend to central bank digital currency development.
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Originally announced in 2019, JPM Coin was commercially launched in October 2020.
The investment bank has been actively promoting its blockchain technology for use globally, partnering with Singapore’s largest bank, DBS, to pilot a blockchain payments system. JPMorgan previously provided its Liink blockchain technology to the State Bank of India to reduce transaction costs and improve cross-border payments.