The Central Bank of Bahrain (CBB) is planning to roll out a Bitcoin payment processing and payout solution in partnership with Bitcoin payment processor OpenNode.
OpenNode released a press statement in which it said that in this history-making move, OpenNode will test Bitcoin payment infrastructure in Bahrain via the CBB’s Regulatory Sandbox. OpenNode said the solution is guided by the growing interest in digital assets across this Middle East and added that the solution would be central to pushing economic growth whilst simultaneously supporting business. Afnan Rahman, CEO of OpenNode said:
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.
Since its creation four years ago, OpenNode has been focused on providing Bitcoin payment acceptance and pay-out solutions for businesses, platforms, and people globally.
The Middle East’s Focus on Developing The Digital Asset Sector
The company said that once deployed, the payment solution would usher in the room to develop similar products in the future. Dalal Buhejji, a member of the Bahrain Economic Development Board said that the Bitcoin payment solution is part of the bigger scheme of the emerging digital economy in a regulated space. Bahrain, along with other Middle Eastern countries such as Dubai is focusing on improving the environment for business in the crypto space. Bahrain recently released the Regulatory Sandbox to develop the country’s financial technology ecosystem to diversify the economy. Part of that framework allows crypto entities to undertake real-time research in a controlled environment, under the scrutiny of a regulator.
The development of the Bitcoin payment processor underscores the country’s efforts to develop its digital asset sector. The country has also recently allowed more businesses to set up their bases in the region. In May 2022, the CBB granted a Category 4 license to Binance, allowing it to offer a wider range of services to users in the country. At the time the license was issued, Binance was the first virtual asset provider to hold a full category 4 license in Bahrain. The milestone came only three months after the exchange secured its preliminary authorisation to establish a crypto-asset business, paving the way for it to begin operations within the country.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
