EDB: Bahrain open to digital currencies

Manama : The Kingdom is keen on adopting digital currencies like bitcoin as part of a wider plan toward a country level adoption of blockchain technologies, Khalid Al Rumaihi, Chief Executive, Economic Development Board (EDB) has said.

“We are open to Bitcoins”, the Hindu BusinessLine reported the EDB Chief Executive as saying in response to a query at the MIT ‘Innovation Forum’ which concluded in the Capital yesterday. 

The digital currency friendly approach is a smart move by the Kingdom to make Bahrain a FinTech hub in the region.

The Bahrain Central Bank recently put in place Regulatory Sandbox regulations and as many as four companies had so far applied in this regard. Two of the four had already received approval from the central bank.

“This (Regulatory Sandbox) is much like Singapore and what UK is looking at. This is not just talk. We have launched it. You can go to the website and application process is clear. We are open for business,” Rumaihi told the business newspaper.

All digital currency-related developments in the private sector would occur in a Regulatory Sandbox, a major move toward enticing investors to make the Kingdom the FinTech hub in the region.

Al Rumaihi revealed the paper that a bitcoin exchange operator in Saudi Arabia has already made inquiries toward establishing a bitcoin exchange in Bahrain. “We are working with the Central Bank of Bahrain on this,” Al Rumaihi added.

“I hate to be a regulator today. Because we are obliged to protect the consumers and customers. There is fear about funding and anti-money laundering. We are going to be looking through the Regulatory Sandbox allowing small-scale experimentation,” he told the paper.

Furthermore, he also revealed the extent to which Bahrain could adopt and use digital currencies by suggesting that Bahrain could also issue bonds on a digital currency, the paper said.

Bahrain has unveiled grand plans in targeting a systemic, nationwide adoption of blockchain technologies.

Al Rumaihi indicated that Bahrain’s Finance Ministry – the country’s financial regulator and watchdog – was also keen on adopting digital currencies like bitcoin.

The ability for blockchain to be adopted at country level is a huge opportunity for Bahrain to move into the spotlight as a pioneer in this space.