MANAMA: Instantaneous cross-border payment powered by state-of-the-art technology and digital currency will be piloted by the Central Bank of Bahrain in collaboration with JP Morgan and Bank ABC.
The trial will see the transfer of funds from and to the Bahrain in USD for payments from buyers to suppliers.
This will lead to suppliers being paid faster and buyers originating payments in shorter time periods without the need for holding funds in advance.
The CBB will act as a partner in the project and going forward would look to extend the collaboration to Central Bank Digital Currencies (CBDCs).
“We are extremely pleased to announce this collaboration which is in line with our vision and strategy to continually develop and enrich the capabilities extended to the stakeholders within our financial services sector in the kingdom using emerging technologies,” said CBB governor Rasheed Al Maraj.
“Through this pilot with JP Morgan and Bank ABC, we aspire to address the inefficiencies and pain-points which exist today in the traditional cross-border payments arena.”
Commenting on the project and refe, Ali Moosa, vice-chairman of wholesale payments at JP Morgan, said “We are delighted to partner with a leading central bank and regulator like the CBB and an innovation-focused partner like Bank ABC to lead the buildout of a next generation payment and settlement infrastructure.”
Mr Moosa added this was one of the mandates of JP Morgan Onyx – a new business created by the bank for its blockchain and digital currency initiatives.
The unit has more than 100 dedicated staffers.
Also commenting was Bank ABC’s deputy group chief executive Sael Al Waary who said he was “excited” to collaborate with the CBB and JP Morgan in “this landmark pilot”
“The aim is to develop a more efficient payments infrastructure, focused on addressing the current limitations in cross-border payments. We envisage major changes across the world with digital currencies, which will play a critical role in enabling the future digital economies,” he added.
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