The Central Bank of Bahrain and JP Morgan Chase launch pilot work on digital currency settlement

Government of Bahrain, thirdThe richest Arab countries/regions are cooperating with U.S. investment bank JPMorgan Chase to conduct digital currency settlement pilots.

The Central Bank of Bahrain officially Announce On Tuesday, the bank is working with JP Morgan Chase and Arab banking companies BSC or Bank ABC on a pilot program to introduce an instant cross-border payment solution based on digital currency technology.

In order to shorten the settlement processing time, the new digital currency pilot will involve the transfer of funds from Bahrain to Bahrain in U.S. dollars to make payments from buyers and suppliers. The central bank emphasized that it can continue the project to expand the scope of cooperation to the central bank’s digital currency.

CBB Governor Rasheed Al-Maraj said: “Through pilot projects with JPMorgan Chase and ABC Bank, we hope to solve the current inefficiencies and pain points in the traditional cross-border payment field.”

Ali Moosa, vice chairman of JP Morgan’s wholesale payments, pointed out that the new cooperation involves the company’s The department that focuses on digital currency, called Onyx. The product was piloted in 2017, initially called Interbank Information Network, and was renamed Liink in October 2020.

“JPMorgan Onyx’s mission is to lead the construction of the next generation of clearing and settlement infrastructure. We are pleased to work with leading central banks and regulatory agencies (such as CBB) to lead the construction of the next generation of payment and settlement infrastructure,” The executive pointed out.

JPMorgan Chase has been actively promoting its blockchain technology expertise to cooperate with cross-border payments in global jurisdictions. In late April, JP Morgan Chase Cooperation with Singapore’s largest bank, DBS Bank (DBS) and state-owned investment company Temasek (Temasek) established a new blockchain enterprise focusing on global payments and interbank transactions.Previous bank Provides its Liink technology An Indian government-backed bank to reduce transaction costs and improve cross-border payments.