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The Central Bank of Bahrain in partnership with Bank ABC has recently announced that it has successfully tested the cross-border transfer test using the JPMorgan Blockchain. The test aims at fulfilling the central bank's goal of creating safe and secure settlement solutions for customers.
CBDCs are Reducing Inefficiencies in the Cross-Border Payment Arena
Bahrain's central bank recently announced that it has successfully conducted its first cross-border money transfer using the JPMorgan blockchain. The transfer, which was made in collaboration with Financial Institution ABC, is the CBB's most recent move as it prepares to introduce its digital currency. "We at the Central Bank of Bahrain are extremely pleased to announce the success of this test," said Governor Rasheed Al Maraj in a statement. "This test is consistent with our vision and goal of employing sophisticated and leading emerging technologies to continuously improve and deepen the capabilities given to stakeholders in the Kingdom's financial services industry." Al Maraj went on to say that the CBB will work with its partners to "address and eradicate the inefficiencies and pain points that exist today in the conventional cross-border payments sector. " The CBB, like a handful of its peers in the area, is preparing to launch its central financial institution digital currency (CBDC), which it claims would provide "safe and environmentally sustainable settlement choices." However, the central bank makes no mention in its announcement of whether it plans to perform more evaluations or when the CBDC would be launched. Only the Chinese and Nigerian central banks have introduced CBDCs so far, while the remainder is still in the early phases of building their digital currencies. Only time will tell about the adoption of CBDC by different central banks around the world. As it is still in a developing stage, proper evaluation and analysis is needed for a concrete decision.