Central Bank of Bahrain Tests Payments with JPM Coin
The Central Bank of Bahrain has made together with Bank ABC the first cross-border money transfer in the stablecoin JPM Coin.
The bank executed the transaction while testing the Onux blockchain platform, which was developed in 2020 by J.P. Morgan, one of the largest banks in the world. The stablecoin JPM Coin, issued on the JPMorgan network, was developed for instant transfer of funds. The value of each coin is $1 and is tied to the price of the dollar.
Rasheed Mohammed Al Maraj, Governor of the Central Bank of Bahrain, has said:
“The Central Bank of Bahrain is pleased to announce the successful completion of this experiment, which was carried out as part of a strategy to continuously develop and improve the financial services sector through advanced and innovative technology.”
Like many other central banks, the central bank of Bahrain intends to issue a CBDC to “improve the security and efficiency of money settlement.” However, the authorities of the country still have not announced the release date of the digital asset. To date, only two central banks have managed to create a CBDC: China’s and Nigeria’s.
