Central Bank of Bahrain announces successful test of JPM coin payments

Central Bank of Bahrain announces successful test of JPM coin payments
The Central Bank of Bahrain (CBB) has successfully completed the test of JPM Coin by JPMorgan. The latter is a digital currency designed to make payments using blockchain technology.

First test of JPM Coin in the region

Bahrain’s central bank revealed that it is committed to improving customer service to provide secure and efficient settlement services. In pursuit of its mission, the financial institution has completed a trial of JPM Coin by JPMorgan Chase. This is the first such trial for a US bank’s blockchain product in this part of the world. Two other entities took part in the experiment: Manama-based ABC Bank and Aluminium Bahrain – the first aluminium smelter in the Middle East, more commonly known as Alba. The test enabled the former to initiate a real-time payment to the latter using a JPM coin.

Bahrain’s central bank oversaw the project as the results were labelled “promising”.  Mr Rasheed Al-Maraj – Governor of CBB – highlighted the success of the experiment, stating that the Kingdom will continue to use pioneering technology to strengthen the local financial network.

“Working with Alba, Bank ABC and Onyx from JPMorgan, we aim to solve and eliminate the inefficiencies that currently exist in the area of traditional cross-border payments,” he added.

For his part, Sael Al Waary – Group Vice President of Bank ABC – said that participating in the test marks the achievement of an “important milestone” for his company.  He predicted that cryptocurrencies will play a “critical role” in transforming digital economies in the future.

Ali Mousa – CEO of JPMorgan Bahrein – also commented:

 “JPMorgan subsidiary ONYX is committed to initiating the construction of the next generation of clearing and settlement infrastructure… The completed trials with Alba and Bank ABC will help further develop JMP’s digital currency systems for future use by our banking partners.”

JP Morgan cryptocurrency offering

Although its CEO Jamie Dimon is one of the biggest critics of the digital asset industry, the aforementioned initiative is not the only cryptocurrency-related move the company has ever made. Last summer, the US bank allowed its wealth management clients to engage in six cryptocurrency funds. Four of the products come 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 latter is a new bitcoin fund created by digital asset firm NYDIG that is designed exclusively for private bank clients.

17/01/2022 – Mr.Advice NEWS

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