In a major move to modernise the Kingdom’s financial infrastructure, a consortium of leading Bahraini financial institutions has successfully executed instant payments using digital commercial bank money on Google Cloud Universal Ledger (GCUL). The collaboration, facilitated by Bahrain FinTech Bay, included the National Bank of Bahrain (NBB), Bahrain Islamic Bank (BisB), Bank of Bahrain and Kuwait (BBK), and Benefit.
A Landmark Step for Bahrain’s Financial Infrastructure
Supported by the Bahrain Economic Development Board, the pilot represents a significant milestone in the nation’s digital transformation journey. The initiative demonstrates Bahrain’s commitment to adopting cutting-edge technologies to enhance its financial services sector. The pilot’s success lays the groundwork for a more efficient, secure, and continuously operational payment ecosystem within the country. Ghassan Kosta, Regional General Manager at Google Cloud, called the pilot a “landmark achievement” that supports Bahrain’s vision for digital transformation.
Real-World Transactions and Tangible Benefits
To validate the system’s capabilities, high-value transactions in Bahraini Dinar were processed and settled instantly in a controlled environment between two of the country’s industrial giants, Aluminium Bahrain (Alba) and Bapco Energies. The trial successfully showcased several key benefits, including the potential for reduced transaction costs, enhanced transparency and security through distributed ledger technology, and the ability to operate 24/7 without settlement delays.
The Technology Powering the Pilot
Google Cloud Universal Ledger (GCUL) is a distributed ledger platform purpose-built for financial services. It is designed to enable real-time transactions, simplify account management, and integrate seamlessly with existing core banking systems. The platform allows financial institutions to build new client services on Google Cloud’s secure infrastructure without disrupting their core deposit or lending operations.
Future of Payments in the Kingdom
This successful pilot sets the stage for a broader rollout. The next phase aims to expand the initiative to more banks and financial institutions across Bahrain, with plans to enable cross-border and multi-currency transactions. Future development will also focus on integrating the technology at the point-of-sale, extending the benefits of real-time, programmable payments directly to consumers. Ashish Majmundar, Global Head of FSI Practice at Google Cloud, noted that the pilot “establishes a model for an instant, programmable Bahraini Dinar and provides a scalable platform for multi-currency transactions across the world.”
About Bahrain FinTech Bay
Bahrain FinTech Bay is a leading FinTech hub in the Middle East, providing a dedicated platform for innovation, collaboration, and incubation within the financial technology sector. It connects fintech startups, corporations, investors, and government bodies to accelerate the development and adoption of new financial technologies in the region.
Source: Fintech News Middle East
