The Central Bank of Bahrain (CBB), working in partnership with Bank ABC, recently announced it had successfully tested the transfer of funds across borders using JPMorgan’s JPM Coin. The test fulfills the central bank’s goal of creating safe and efficient settlement solutions for customers.
Eliminating Inefficiencies in the Cross-Border Payment Arena With CBDCs
Bahrain’s central bank recently said it had piloted its first cross border funds transfer using the JPMorgan blockchain. The transfer, which was carried out in partnership with Bank ABC, is the latest step taken by the CBB as it prepares to launch its digital currency.
In his comments following the latest test, CBB governor, Rasheed Mohammed Al Maraj, is quoted by Unlock Media lauding the central bank’s ongoing tests. He said:
We at the Central Bank of Bahrain are extremely pleased to announce the success of this test which aligns with our vision and strategy to continually develop and enrich the capabilities extended to the stakeholders within our financial services sector in the Kingdom using advanced and leading emerging technologies.
Al Maraj added that through the institution’s partners, the CBB will attempt to “address and eliminate the inefficiencies and pain points which exist today in the traditional cross-border payments arena.”
Just like some of its counterparts in the region, the CBB is preparing to roll out its central bank digital currency (CBDC) which it says will lead to “safe and efficient settlement solutions.” However, in its statement, the central bank does not state if it plans to conduct more tests or when it expects to finally launch the CBDC.
Globally, only the Chinese and Nigerian central banks have so far launched their CBDCs while the rest are still at different stages of developing their digital currencies.