Central Bank of Bahrain taps JPMorgan Onyx for digital currency trials
The Central Bank of Bahrain is to use JPMorgan’s blockchain platform Onyx in a pilot scheme to introduce instantaneous cross border payment using a digital currency.
The central bank says it will act as a close partner in the pilot trials and would look to extend the collaboration to Central Bank Digital Currencies (CBDCs).
H.E. Rasheed Al-Maraj, governor of the Central Bank of Bahrain, states: “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”.
JPMorgan last month formed a joint venture with DBS, Bank and Temeasek in Singapore that will use Onyx to challenge the cumbersome hub-and-spoke model applied to traditional cross-border payment flow.
The new venture, dubbed Partior, has it roots in project Ubin, a blockchain-based protytpe for multi-currency payments developed by the Monetary Authority of Singapore in partnership with JPMorgan and Temasek.
The commercial applications of the payments network include cross-border payments in multiple currencies, foreign currency exchange, settlement of foreign currency denominated securities, as well as integration with other blockchain-based platforms.
Speaking of the extension of the platform to the Middle East, Ali Moosa, vice chairman of wholesale payments at JPMorgan, states: “JPMorgan Onyx has been setup with the mandate to lead the buildout of next generation clearing and settlement infrastructures and we are delighted to partner with a leading central bank and regulator like the CBB and an innovation-focused partner like Bank ABC.”