Bahrain’s Central Bank, CBB successfully conducts trials of JPMorgan’s Blockchain and token JPM coin. Let’s read more about this feat.
Bahrain has joined the list of nations to try out blockchain technology. Their endeavour got some help from the American investment bank JPMorgan. Presently, the country’s central bank, The Central Bank of Bahrain is conducting trials on JPMorgan’s digital currency.
The Central Bank of Bahrain or the CBB has run a series of tests on digital payments in collaboration with JPMorgan’s blockchain and cryptocurrency unit Onyx. According to the official announcement by the Bahraini authorities, the tests were deemed a success.
The test included two other major institutions, an international bank, Bank ABC and Aluminium Bahrain, Bahrain’s national Aluminium smelter also called Alba. In the trail, Bank ABC settled real-time payments to Alba’s operations in the US using JPM Coin. The JPM coin uses a blockchain-based payments system. Additionally, the JPM coin is a Stablecoin, pegged to the US dollar, that means it’s designed to stay at $1.
The test was performed under the supervision of CBB. Rasheed Al Maraj, CBB’s governor revealed that the trial has played crucial role to address the current problems we see in the traditional cross-border money transaction industry. He also implied that this has the potential to hopefully eradicate the problem entirely.
The government gave his comments on the issue. He said that “We are pleased to announce the success of this test, 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 emerging and pioneering technologies.”
The announcements of the development
The Central Bank has in the past talked about its plans to test out JPM Coin in May 2021. They also hinted that after a successful trial run, they could potentially work on central bank digital currency development with the h help of this.
JPMorgan : A key player in Blockchain Technology development
Initially, the announcement of the coin by bank was in 2019. However, the commercial launch was on October 2020. JPMorgan has been promoting the use its blockchain tech for a while. The bank has also been in a partnership with the biggest bank in Singapore, DBS, to create a blockchain based payments system.
Additionally, JPMorgan’s Liink blockchain based technology is used by the State Bank of India to help keep transaction costs low and for better cross-border payments.
Bahrain’s Central Bank, CBB successfully conducts trials of JPMorgan’s Blockchain and token JPM coin. This truly is an achievement by the Bahraini authorities. Hopefully, this will pave way for countries for the development of Central Bank Digital Currencies (CBDCs).
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- Bahrain WTC: Artwork : Saifi Aleem