In line with the advancement of global crypto adoption, OpenNode has announced the testing of a Bitcoin payment processing and payouts solution for the Central Bank of Bahrain (CBB). This news came via a press release published on the 13th of September, which was also shared on OpenNode’s official Twitter account.
The testing, OpenNode explained, would occur within the central bank’s regulatory sandbox, maintained by Bahrain to develop its financial service sector and allow entities to conduct finance-based research on a trial basis.
Although the testing ground was launched in 2017, it was mainly designed for the country’s fintech ecosystem and only opened to accommodate digital diversity in 2021.
Central Bank of Bahrain (CBB) On Expanding Crypto Sector
Bahrain, the Kingdom of Bahrain, is located in Western Asia. Launched in 2002, the Central Bank of Bahrain is the body responsible for the supervision and regulation of the entire finance sector.
Bahrain’s partnership with OpenNode touches on its ongoing efforts to prepare its economy for crypto businesses. The country has previously enabled enterprises to set up across its region.
Earlier this year, Binance Bahrain was the first crypto exchange to be granted a category four license. The license allowed the world’s most significant crypto exchange authority to operate as an established crypto-asset service provider.
However, Binance could only attain that status after ticking CBB’s technological, operational, and technological security requirements. The requirements were in line with the regulatory sandbox rules.
Before the achievement, it received an “in-principle” decision as the first phase of the authorization process. This signified it had met at least one or more stipulated standards. Then, Binance went on to get preliminary approval to creating a crypto-asset firm, allowing for the commencement of operations.
OpenNode’s Collaboration With Bahrain
OpenNode, the leading Bitcoin infrastructure provider, was launched four years ago and has since started operations in over 160 countries globally.
The company has assisted businesses and individuals with seamlessly integrating Bitcoin payment solutions.
For the island country, its contribution would provide the necessary infrastructure to expand the nation’s economy and convey how Bitcoin forerun better businesses.
In his speech, Afnan Rahman, chief executive and co-founder of OpenNode stated,
“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.”
The Executive Director – Investment Development for Financial Services at the Bahrain Economic Development Board, Dalal Buhejji- had this to say,
“We are proud to have worked with the Central Bank towards establishing a strong financial services ecosystem within the Kingdom of Bahrain. As a country, we have always been ahead of the curve in adopting Fintech solutions thanks to our regulator’s flexibility and forward thinking.”
He added that the financial sector had been an integral part of the country’s economy, and OpenNode’s trail would open doors for more innovations while adhering to regulatory measures.