Breaking New Ground in Payments
Bahrain’s Bank ABC is taking a giant leap into the world of blockchain with the decision to employ JPMorgan’s Onyx Coin Systems. This innovation is set for a soft launch, and if you’re wondering if it’s another tech fad, think again! The new service promises to cut costs and drastically reduce settlement times compared to the traditional payment methods—basically tossing the old slowpoke’s approach out the window!
Initial Rollout: A Focus on the Green
The first transactions will be using the ever-glamorous U.S. dollar, mingling in financial circles with the likes of Bahrain, the United States, the United Kingdom, Singapore, and Hong Kong. And just when you thought it couldn’t get more exciting, the powers behind the scenes are planning to broaden the service to include the euro as well. Talk about branching out!
Programmable Payments on the Horizon
As if this wasn’t enough to get the fintech enthusiasts chomping at the bit, plans are already underway for programmable payments to jump into the mix. Imagine being able to set your payments on autopilot, doing all the heavy lifting for you! It seems the future of finance isn’t just bright, it’s progressing at the speed of light.
A Two-Year Journey to Launch
This thrilling development didn’t happen overnight. After two years of persistent experimentation, the global head of Onyx Coin Systems, Naveen Mallela, eloquently stated: “This enables cross-border commercial transactions to be executed between Bahrain and US corridors instantly, atomically, and with certainty.” Sounds fancy, right? It’s because it is! The Central Bank of Bahrain (CBB) collaborated closely with Bank ABC to ensure everything runs as smoothly as a well-oiled machine.
Setting the Stage in the Middle East
In a major move, Bank ABC is now the first bank in the Middle East to partner with JPMorgan’s blockchain service. This isn’t an isolated event either; earlier this year, Onyx teamed up with six Indian banks for a prize pilot project targeted at U.S. dollar settlements and even partnered with the German giant Siemens for euro transactions. Who knew blockchain could be so social?
Looking Ahead: Bahrain’s Financial Innovation
Bahrain is clearly stepping up its game in the world of finance. With Binance receiving its license in March 2022, the kingdom was quick off the blocks in the Arabian Gulf region. It’s a dance of regulation and innovation, allowing international crypto exchanges to take root while ensuring compliance with local laws. Who says finance is boring?
