Bahrain is the latest country to explore blockchain technology by US investment bank JPMorgan, with the country’s central bank piloting a digital currency owned by JPMorgan.

Bahrain’s central bank (CBB) has successfully completed testing of digital payments with JPMorgan’s blockchain subsidiary Onyx and cryptocurrency arm Onyx, according to a January 6 announcement.

Two other major institutions were involved in the lawsuit: the World Bank in Manama, Bank ABC and Bahrain’s national aluminum smelter, Aluminum Bahrain, also known as Alba. The test allowed Bank ABC to make real-time payments to Alba’s counterparties in the US using JPM Coin, a blockchain-based payment system and a stack coin linked to the US dollar.

Bahrain’s central bank was responsible for overseeing the trial, according to the announcement.

Bahrain’s central bank governor Rashid Al-Maraj said the experience was crucial for the Bahrain government to address and potentially address existing gaps in the traditional cross-border payment industry.

Al Maraj said: “We are pleased to announce the success of this test, which is in line with our vision and strategy to develop and enrich the opportunities provided to stakeholders in the financial sector in the Kingdom, using new and innovative technologies.”

Bahrain’s central bank announced earlier plans to test the JPM coin in May 2021, noting that the experiment could extend to the development of the central bank’s digital currency.

Related: WhatsApp starts testing currency payments with Meta Novi Wallet

JPM Coin was originally announced in 2019 with a commercial launch in October 2020.

The investment bank is actively promoting its blockchain technology for global use, and is collaborating with Singapore’s largest bank, DBS, to pilot a blockchain payment system. JPMorgan previously lent its Liink blockchain technology to the State Bank of India to reduce transaction costs and improve cross-border payments.

Source: CoinTelegraph

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