Bahrain is taking a pioneering role in cryptocurrency regulation, introducing legal frameworks that provide investors with confidence while addressing associated risks, Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa stated in Parliament during its weekly session.
Shaikh Salman emphasized that the Central Bank of Bahrain (CBB) is regularly updating its regulations to stay aligned with financial advancements. “Bahrain is among the few countries with specific regulations governing cryptocurrencies,” he explained. “The banking and financial sector is the largest in our economy, and we remain at the forefront of financial innovation.”
While acknowledging the risks involved in cryptocurrency investments, the minister reassured Parliament that Bahrain’s regulatory framework ensures stability within the sector. He noted the additional cybersecurity risks associated with digital assets but affirmed that the country’s regulatory oversight of licensed entities offers an added layer of security. “Although risks remain, the situation is far better than dealing with unregulated entities abroad,” he said.
Shaikh Salman also distinguished between digital currencies issued by central banks, such as Bahrain’s “digital dinar” (which is pegged to the Bahraini dinar), and private cryptocurrencies, which are not tied to any national currency.
On the subject of a unified Gulf currency, Shaikh Salman confirmed that discussions are ongoing within the GCC. He added, “Several initiatives have been adopted to facilitate direct and instant payment settlements between GCC countries.” However, he noted that the US dollar remains the primary currency in global reserves and the US economy continues to be the largest.
Addressing inquiries regarding investment in state-owned land, Shaikh Salman highlighted Bahrain’s Government Land Investment Platform, launched in 2022. The platform optimizes government assets and aligns with Vision 2030, promoting sustainability, competitiveness, and fairness. “It provides transparency and allows investors to compete for strategic projects that drive economic development,” he stated.
Previously scattered across different entities, government lands are now consolidated in one place for easier access by investors. The platform has already attracted significant interest from the private sector. The minister also shared that several projects are underway on government-owned lands, with real estate and investment activity expected to grow further.
Shaikh Salman highlighted the government’s ongoing efforts to streamline investment procedures. “A dedicated team is working to modernize systems and investment policies,” he said, emphasizing the government’s commitment to reducing bureaucracy, improving efficiency, and accelerating investment-related approvals.
With Bahrain positioning itself as a financial and investment hub, the government’s focus on regulatory advancements, digital transformation, and attracting private sector participation is expected to drive further economic growth. This message was part of Shaikh Salman’s response to questions from three MPs during the weekly session.
