- OpenNode said it would test a BTC payment solution for the Central Bank of Bahrain.
- The testing will be carried out within the regulatory sandbox maintained by CBB.
- The approval will likely open endless possibilities for innovations by FinTech platforms.
OpenNode, a Bitcoin and Lightning Network infrastructure provider, recently announced that it would test a Bitcoin processing and payouts solution for the Central Bank of Bahrain (CBB). The move will be the first time the country has adopted Bitcoin as a mode of payment.
As per the announcement, the testing will be carried out within the regulatory sandbox maintained by the CBB. The sole purpose of the demonstration is to show how Bitcoin is closely associated with better business practices.
Afnan Rahman, the CEO and co-founder of OpenNode, said in a statement:
This is a watershed moment for the people of Bahrain, the Middle East, and the Bitcoin economy as a whole. 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.
During the initial testing phase, OpenNode intends to show the central bank that Bitcoin can expand the Bahrain economy by strengthening businesses in the region. According to the press release, before being used for the testing of Bitcoin, the sandbox was originally used to test FinTech applications in the country on a trial basis.
According to Bahrain government official Dalal Buhejji, the move by OpenNode to test its bitcoin payment with the CBB’s approval will create endless possibilities for innovations by FinTech platforms while adhering to the regulations.
In recent years, Bahrain has been seen turning to digital currencies as part of its financial structure. Notably, the finance ministry of Bahrain suggested the adoption of digital currencies in the system.
Concurrently, several countries have turned to crypto-based payments to help improve both local and cross-border transactions. The Russian government has turned its attention to developing digital platforms after its economy has been struggling following sanctions from the US and UK.