A recent announcement from Opennode, a bitcoin payment infrastructure company, revealed that it will be running trials of its bitcoin payout and processing solution in Bahrain.
The company disclosed that it would be using the regulatory sandbox that the Central Bank of Bahrain has established for this purpose.
The Bahrain Economic Development Board’s economic director, Dalal Buhejji said that the sandbox of the central bank is designed to assist fintechs in innovating while following the best regulatory practices.
Opennode announced that it would use the regulatory sandbox that the Central Bank of Bahrain (CBB) was offering for testing a processing and payout solution involving bitcoin.
The bitcoin infrastructure company said in a statement that the infrastructure that they intend to offer to Bahrain would help the country in growing its economy.
Most importantly, Opennode asserted that it would also help them in showcasing how Bitcoin can help businesses be better.
The regulatory sandbox that CBB is offering will help Opennode in conducting trials of the crypto payment system they have developed in the territory of Bahrain.
Dalal Buhejii, Bahrain’s Economic Development Board’s executive director, talked about the decision of the central bank to authorize the use of its regulatory sandbox for use by Opennode.
He stated that they had worked with the country’s central bank in order to develop a strong ecosystem for financial services in the Kingdom of Bahrain.
He went on to say that they had always stayed ahead of the curve as a country when it comes to adopting new fintech solutions.
He added that this was all because of the forward thinking approach adopted by their regulatory authority and their flexibility.
Buhejji went on to say that the sandbox of the CBB would help in ensuring that fintechs in Bahrain can continue with their innovation and do it while adhering to top regulatory practices.
The bitcoin standard
The co-founder and chief executive of Opennode, Afnan Rahman also talked about the company’s plans. He stated that the tests that they plan to carry out in the regulatory sandbox are not just for Bahrain.
Instead, he disclosed that they would serve as a watershed for the entire Middle East. The CEO of Opennode said that their top Bitcoin payment solution was not limited to one country or organization.
He said that it was meant to allow governments, countries as well reputable financial institutions for adopting the bitcoin standard and conducting transactions on the lightning network.
The ambition certainly does not come as a surprise, given that the Middle East has seen a rise in the popularity of cryptocurrencies in general.
A number of Middle Eastern countries have now taken an interest in the crypto market, including the United Arab Emirates (UAE).
Given the widening scope of activities and the regulation being introduced accordingly, it is understood why Opennode would want to eventually expand its operations once it succeeds in developing a solution.