The Central Bank of Bahrain has revealed the intention to launch a pilot project to settle digital currencies, in cooperation with "JP Morgan" and Arab Banking Corporation (ABC).
According to the Bahraini Central Bank, ABC Bank and JP Morgan will initiate a joint experiment to transfer money to and from the Kingdom of Bahrain between buyers and suppliers in US dollars, this process will result in suppliers being paid faster and buyers transferring their payments in shorter periods of time without having to hold funds up front.
Central banks around the world are increasingly interested in digital cash, in an effort to fend off emerging threats to traditional money and to make payment systems smoother. Fearing the spread of cryptocurrencies, central banks search for and experiment with digital currencies.
Central bank digital currencies are essentially electronic money, just like traditional cash, as they give their holders a direct claim from the central bank and allow companies and individuals to make electronic payments and transfers. China aims to become the first major central bank to issue a digital currency, the European Central Bank is exploring the launch of the digital euro within the next five years, and the Bank of England has intensified its research into what it has called "Britcoin" without making any firm pledges.
Source (Al-Arabiya.net, Edited)
