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Bahrain is the latest country to test blockchain technology from U.S. investment bank JPMorgan.
Bahrain central bank completes remittances trial
The Central Bank of Bahrain (CBB) has completed a test of digital payments in collaboration with JPMorgan’s blockchain and cryptocurrency unit Onyx, according to an official statement on Jan. 6. The test involved two other significant institutions, Manama-based international bank ABC and Bahrain’s national aluminum smelter Aluminium Bahrain, known as Alba.
The test enabled the bank ABC to process real-time payments to Alba’s business partners in the United States using JPM Coin a blockchain-based payment system and stablecoin pegged to the U.S. dollar. According to the announcement, the CBB was responsible for overseeing the process. CBB Governor Rasheed Al Maraj said the trial was critical for the Bahraini government to address and potentially eliminate existing inefficiencies in traditional cross-border payments.
JPMorgan has commented positively on blockchain technology
The CBB had previously announced plans to test the JPM Coin in May 2021 and said the trial could potentially be expanded to include the development of the central bank’s digital currency. JPMorgan Chase’s in-house stablecoin was launched in October 2020. JPMorgan Chase relies on blockchain to create new payment rails for global central banks and their developing central bank digital currencies.
The investment bank has been actively promoting its blockchain technology for global use and has partnered with Singapore’s largest bank, DBS, to test a blockchain payment system. Previously, JPMorgan provided its Liink blockchain technology to the State Bank of India to reduce transaction costs and improve cross-border payments.
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