American investment bank JPMorgan has made Bahrain the latest country to test blockchain technology. Bahrain’s central bank is currently testing JPMorgan’s digital currency.
According to an announcement made Jan. 6, the Central Bank of Bahrain (CBB), it has passed a digital payment test with JPMorgan’s Blockchain and Cryptocurrency Unit Onyx.
Two other large institutions were also involved in the trial: Bank ABC, a Manama-based international bank and Aluminium Bahrain, Bahrain’s national aluminium smelter, also known under the name Alba. Bank ABC was able to make real-time payments via the JPM Coin, a stablecoin and payment system based on blockchain technology to Alba’s counterparts in America.
The announcement stated that the CBB was responsible to supervise the trial.
Rasheed Al Maraj, CBB governor, stated that the trial was crucial for Bahrain’s government to identify and possibly eliminate inefficiencies in traditional cross-border payments.
Al Maraj stated that he was pleased to announce the test’s success, in keeping with his vision and strategy of enhancing the capabilities offered to Kingdom stakeholders through the use of innovative and pioneering technologies.
CBB had previously announced plans to test the JPM Coin in May 2021. It stated that the trial could possibly extend to its central bank’s digital currency development.
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JPM Coin was first announced in 2019. It was commercially launched October 2020.
The bank has been active in promoting blockchain technology for global use and partnered with DBS (Singapore’s largest bank) to test a blockchain payment system. JPMorgan provided its Liink blockchain technology previously to the State Bank of India in order to lower transaction costs and improve cross border payments.