Central Bank Of Bahrain Successfully Completes JPM Coin Payment Test
The Central Bank of Bahrain (CBB) has successfully completed a test with JPMorgan’s JPM Coin – a digital currency aimed to make payments using blockchain technology.
Bahrain’s central bank shared its commitment to improve customer experience for secure and efficient settlement services. In order to follow its vision, the financial institution completed a trial with JPMorgan Chase’s JPM Coin. This marks the first test of its kind for the US bank’s blockchain product in the Middle East.
The experiment involved two other entities: Manama-based Bank ABC and Aluminium Bahrain – the first aluminum smelter in the Middle East, also known as Alba. The test enabled the former to initiate real-time payments to the latter utilizing the JPM Coin.
CBB supervised the project as the results were labeled “promising.” Mr. Rasheed Al-Maraj, Governor of the CBB, highlighted the experiment’s success, stating that the Kingdom will continue employing pioneering technologies to enhance the local financial network. He said:
“Working with Alba, Bank ABC, and Onyx from JPMorgan, we aspire to address and eliminate the inefficiencies that exist today in the area of traditional cross-border payment.”
Mr. Sael Al Waary, Group Executive Vice President of Bank ABC, said that participating in the test marks the achievement of an “important milestone” for his bank. He anticipates that cryptocurrencies will play a “critical role” in transforming digital economies in the future.
Ali Mousa, the CEO of JPMorgan Bahrein said:
“JPMorgan’s ONYX subsidiary is committed to spearheading the construction of the next generation of clearing and settlement infrastructure… The completed testing with Alba and Bank ABC will help inform further development of the JMP digital currency systems for future use by our banking partners.”
JPMorgan and Crypto
Even though JPMorgan’s CEO Jamie Dimon is not the biggest fan of the digital asset industry, the latest experiment is not the only crypto-related move the banking giant has ever done.
Last summer, the US bank enabled crypto fund access to its wealth management clients. Four of the products are from Grayscale Investments and include Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Cash Trust (BCHG), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), while Osprey Bitcoin Trust (OBTC) is part of the Osprey Funds.
The sixth is a fairly recent bitcoin fund created by the digital asset company NYDIG, designed only for private bank clients.
