The Central Bank of Bahrain has selected JP Morgan for a digital currency pilot, that aims to address the current limitations in cross-border payments.
The trial is for cross border US dollar supply chain payments and receipts with Bahrain’s Bank ABC, according to Ledger Insights. Going forward, the central bank said it would consider extending the partnership to Central Bank Digital Currencies (CBDCs).
Digital currency payments are usually point to point (P2P), removing intermediaries. The settlement solution is part of JP Morgan’s Onyx blockchain division. This division is also involved with Singapore in an interbank settlement platform.
Onyx also has its Liink (formerly IIN) blockchain solution, which aims to address holdups in more conventional payment messaging systems. Amongst other applications, Onyx has developed an intraday repo system and an automated check clearing solution.
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