Bahrain is playing a pioneering role in regulating cryptocurrencies, implementing legal frameworks that provide confidence to investors while acknowledging associated risks, MPs heard.

Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa told Parliament during its weekly session yesterday that the Central Bank of Bahrain (CBB) updates its regulations to keep pace with financial advancements.

“Bahrain is among the few countries with specific regulations governing cryptocurrencies,” he said. “The banking and financial sector is the largest sector in our economy and we remain at the forefront of financial innovation.

“However, with any investment that carries risks, investors must be made fully aware of them.”

The minister acknowledged the additional cybersecurity risks associated with digital assets but reassured MPs that Bahrain’s regulatory framework helps provide stability in the sector.

“The legal framework ensures oversight over licensed entities, offering a layer of security,” he explained. “While risks remain, the situation is far better than dealing with unregulated entities from abroad.”

Shaikh Salman also clarified the distinction between digital currencies issued by central banks and private cryptocurrencies.

“The ‘digital dinar’ is an example of a regulated digital currency, as it is pegged to the Bahraini dinar. However, cryptocurrencies are not tied to any national currency,” he said.

On the topic of a unified Gulf currency, Shaikh Salman confirmed that discussions remain ongoing at the GCC level.

“Several initiatives have been adopted to facilitate direct and instant payment settlements between GCC countries,” he added. “However, for now, the US dollar remains the primary currency in global reserves and the US economy continues to be the world’s largest.”

Shaikh Salman also addressed parliamentary inquiries on the government’s plans to attract investment in state-owned land, highlighting the launch of Bahrain’s Government Land Investment Platform in 2022.

“This platform optimises the use of government assets and embodies the principles of Vision 2030 by ensuring sustainability, competitiveness and fairness,” he explained. “It provides transparency and allows investors to compete for strategic projects that drive economic development.”

The minister noted that previously, government lands were scattered across different entities without a centralised platform.

“Now, all available lands are listed in one place, making it easier for investors,” he said. “The platform is regularly updated and we are witnessing significant interest from the private sector.”

He added that several projects were already underway on government-owned lands, with expectations of further growth in real estate and investment activity. “The government is committed to offering land transparently, ensuring that the best projects are developed to create promising opportunities for Bahraini citizens,” he added.

Shaikh Salman further elaborated on broader governmental efforts to streamline investment procedures.

“A dedicated government team, comprising specialised entities, is working continuously to modernise government systems, including investment policies,” he revealed.

He stressed the administration’s commitment to reducing bureaucracy and improving efficiency.

“There is extensive work underway across government bodies to update procedures, shorten processing times and accelerate investment-related approvals,” he said.

“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.”

He was responding during the weekly session to questions by three MPs.

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