Bahrain’s central bank to pilot digital dollar
Saturday, 05 15 2021, Category: Technology, Country: Bahrain
Central Bank of Bahrain (CBB) has revealed its plans to pilot a digital currency settlement project with US bank JP Morgan and local, Manama-based Bank ABC.
The three entities will test an instantaneous cross border payment solution, which will include the use of digital currencies.
It will see funds transferred between Bahrain and the US via Bank ABC and JP Morgan, on the behalf of buyers paying suppliers.
Funds will be transferred in the form of digital US dollars. The idea is to eliminate the need to hold funds prior and cut down the time to originate a payment.
Going forward, the central bank says it would look to extend the collaboration to central bank digital currencies (CBDCs).
“Through this pilot, […] we aspire to address the inefficiencies and pain-points which exist today in the traditional cross-border payments arena,” says Rasheed Al-Maraj, the central bank’s governor.
Sael Al Waary, Bank ABC’s deputy group CEO, calls this a “landmark pilot” and says digital currencies “will play a critical role in enabling the future digital economies”.