Central Bank of Bahrain taps OpenNode to test Bitcoin payments

The Central Bank of Bahrain (CBB) has decided to tap OpenNode to test a Bitcoin payment processing and payout solution, under its efforts to bring efficient Blockchain-based solutions for the people.

The BTC payment processor intends to supply the infrastructure for the solution, reveals the official press release.

The CBB approved OpenNode to take part in its framework, which enables financial technology firms to explore their ideas and solutions in the nation, after the Regulatory Sandbox was initially introduced in 2017. OpenNode’s co-founder and Chief Executive Officer (CEO) Afnan Rahman commented on the new collaboration by stating:

“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 method is a regulated component of Bahrain’s digital economy.

The idea that the payment processor will shortly test underlines the need for innovation while still complying to the regulatory standards, according to Dalal Buhejji, Executive Director For Investment Development for Financial Services at the Bahrain Economic Development Board.

Bahrain aiming to implement its massive plans

Several Gulf monarchies, notably Bahrain, have begun to warm up to cryptocurrencies after a decade of resistance. When it comes to supporting Blockchain and related initiatives, the region has always shown welcoming signals, especially to the centralized crypto exchanges. As TheCoinRise reported in December last year, Binance secured operating licenses from Bahrain to function as a provider of crypto-asset services (CBB), marking a grand entry into the Middle East and North America (MENA) region.

As was previously reported, Bahrain became the first nation in the Middle East where Binance was given the go-ahead to provide fully regulated services via the Cooperation Council for the Arab States of the Gulf (GCC).

Moreover, in October 2021, Citigroup launched Global Technology Hub in Bahrain, coinciding with its plans to becomes a friendly region for crypto investors.