- The Central Bank of Bahrain collaborates with JPMorgan and Bank ABC.
- To introduce a cross-border payment solution on digital currency immediately.
- The new partnership includes the company’s digital currency-based division Onyx.
On May 11, 2021, the Central Bank of Bahrain announced officially that it collaborates with JPMorgan and Bank ABC, or Arab Banking Corporation BSC, in a pilot scheme. However, the collaboration is made to introduce a cross-border payment solution on digital currency immediately.
In order to reduce settlement processing time, the new digital currency pilot will include transferring funds in US dollars for payments from and to Bahrain. However, funds could be transferred from buyers and suppliers. Moreover, the central bank highlighted that it could move further with the project to extend the partnership to a central Bank Digital Currency (CBDC).
CBB Governor Rasheed Al-Maraj said,
“Through this pilot with JPMorgan and Bank ABC, we aspire to address the inefficiencies and pain-points which exist today in the traditional cross-border payments arena.”
New Partnership Involves Onyx
JPMorgan’s vice chair of wholesale payments Ali Moosa mentioned that the new partnership includes Onyx, the company’s digital currency-based division. In 2017, the product was actually called the Interbank Information Network. Later it was rebranded as Liink in October 2020.
JPMorgan Onyx has been developed with the mandate to proceed the buildout of next generation clearing and settlement infrastructure. Moreover, Onyx ecutive explained that they are delighted to join with the central bank and regulator like CBB.
Furthermore, JPMorgan has been promoting its blockchain technology expertise to partner with global jurisdictions on cross-border payments. In late April, JPMorgan collaborated with Singapore’s largest bank, DBS, and state investment company Temasek. This collaboration is made to launch a new blockchain venture focused on global payments and interbank transactions. More so, the bank previously provided its Liink technology to an Indian government-backed bank to decrease transaction costs and improve cross-border payments.
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