Bahrain is the latest country to test JPMorgan’s blockchain technology.
Onyx, a blockchain and cryptocurrency arm of JPMorgan, has successfully completed a digital payments test with the Central Bank of Bahrain (CBB).
Bahrain’s successful test
The trial also included two other key organizations, the Manama-based international bank ABC and Bahrain’s national aluminium smelter Aluminium Bahrain, or Alba.
The bank ABC was able to conduct real-time payments to Alba’s business partners in the United States using JPM Coin, a blockchain-based payment system and stablecoin linked to the US dollar, as part of the test.
The CBB, according to the release, was in charge of supervising the procedure. The experiment, according to CBB Governor Rasheed Al Maraj, is vital for the Bahraini government to address and perhaps remove existing inefficiencies in traditional cross-border payments.
JPMorgan has shown support for blockchain technology
The CBB earlier announced intentions to test the JPM Coin in May 2021, with the possibility of expanding the experiment to include the creation of the central bank’s digital currency. In October 2020, JPMorgan Chase’s in-house stablecoin will be introduced. JPMorgan Chase uses blockchain to construct new payment rails for global central banks and their growing central bank digital currencies.
The investment bank has actively promoted its blockchain technology for worldwide application, and it has collaborated with Singapore’s largest bank, DBS, to test a blockchain payment system. JPMorgan previously offered the State Bank of India with their Liink blockchain technology in order to minimize transaction costs and facilitate cross-border payments.