Bahrain’s Central Bank Declares Its JPM Coin Payment Test a Success

The Central Bank of Bahrain (CBB) has successfully completed a test of JPMorgan’s JPM Coin. The latter is a digital currency designated to make payments using blockchain technology.

First Tests for JPM Coin in The Region

Bahrain’s central bank revealed it is committed to improving the customer experience for secure and efficient settlement services. Seeking to achieve its mission, the financial institution completed a trial of JPMorgan Chase’s JPM Coin. This is the first test of its kind for the US bank’s blockchain product in that part of the world.

The experiment involved two other entities: Manama-based Bank ABC and Aluminium Bahrain – the first aluminum smelter in the Middle East, more popular as Alba. The test enabled the former to initiate real-time payments to the latter utilizing the JPM Coin.

Bahrain’s central bank supervised the project as the results were labeled “promising.” Mr. Rasheed Al-Maraj – Governor of the CBB – highlighted the experiment’s success, stating that the Kingdom will continue employing pioneering technologies to enhance the local financial network.

“Working with Alba, Bank ABC, and Onyx from JPMorgan, we aspire to address and eliminate the inefficiencies that exist today in the area of ​​traditional cross-border payment,” he added.

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

Ali Mousa – CEO of JPMorgan Bahrein – also commented on the matter:

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

JPMorgan’s Crypto Offerings

Even though its CEO Jamie Dimon is one of the biggest critics of the digital asset industry, the aforementioned initiative is not the only crypto-related move the company has ever done.

Last summer, the US bank allowed its wealth management clients to get involved with six cryptocurrency funds. Four of the products are 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 last one is a new bitcoin fund created by the digital asset company NYDIG, which was designed only for private bank customers.