The Central Bank of Bahrain (CBB) is set to test a Bitcoin payment processing and payout solution in collaboration with OpenNode.
According to the official press release, the BTC payment processor plans to provide the infrastructure for the solution.
The Regulatory Sandbox was first launched in 2017, following which the CBB authorized OpenNode to participate in its framework that enables financial tech companies to test their ideas and solutions in the country.
OpenNode’s CEO and Co-Founder stated,
“OpenNode’s leading Bitcoin infrastructure solution continues to pave the way for countries, governments, and reputable financial institutions to adopt the Bitcoin standard and transact on the lightning network.”
The new Bitcoin payment solution is part of Bahrain’s digital economy in a regulated space.
Dalal Buhejji, Executive Director – Investment Development for Financial Services at the Bahrain Economic Development Board – said the initiative that is soon to be tested by the payment processor is essential and highlights the need for innovation while simultaneously adhering to the regulatory measures.
After a decade of reluctance, several Gulf states, including Bahrain, have started to warm up to cryptocurrencies.
The kingdom is also looking to attract centralized crypto exchanges. As such, one of the world’s leading platforms – Binance – was awarded a crypto-asset service provider license from the Central Bank of Bahrain (CBB).
As reported earlier, Bahrain became the first country in the Middle East where Binance received a green light to offer fully regulated services through the Cooperation Council for the Arab States of the Gulf (GCC).