The central bank of Bahrain has begun testing JPMorgan’s proprietary digital money. Which is based on blockchain technology developed by the American investment giant JPMorgan.
In fact, according to an official release published on January 6, the Central Bank of Bahrain (CBB) completed a digital payment test in conjunction with JPMorgan‘s blockchain and cryptocurrency business Onyx.
Moreover, two other important institutions were involved in the trial. Bank ABC, a Manama-based international bank, and Aluminium Bahrain, or Alba, Bahrain’s national aluminium smelter. The JPM Coin, a blockchain-based payment system and stablecoin pegged to the US dollar, was in use in the test to enable Bank ABC to settle real-time payments to Alba’s counterparts in the US.
The CBB, according to the release, was in charge of overseeing the trial.
The experiment, according to CBB governor Rasheed Al Maraj, was critical for the Bahraini government to address. And potentially eradicate existing inefficiencies in the traditional cross-border payments market.
“We are glad to report the success of this test,” Al Maraj said. “It is in keeping with our vision and plan to grow and extend the capabilities provided to stakeholders in the Kingdom’s financial services industry using emerging and pioneering technology.”
The CBB previously announced that it plans to test the JPM Coin in May 2021. With the option of expanding the experiment to include the development of its central bank digital currency.
JPM Coin was first announced in 2019 and launched in October of the following year.
The investment bank has been promoting its blockchain technology for international use. Including a test blockchain payment system with DBS, Singapore’s largest bank. JPMorgan’s Link blockchain technology previously deployed by the State Bank of India. In order to reduce transaction costs and ease cross-border payments.