The Kingdom of Bahrain has held talks with Singapore`s central bank with regard to the country`s plans to adopt the blockchain technology. Accordin
The Kingdom of Bahrain has held talks with Singapore`s central bank with regard to the country`s plans to adopt the blockchain technology.
According to the publication in Arabian Business, the Monetary Authority of Singapore (MAS) works with Singapore`s stock exchange and eight local and foreign banks on a project regarding blockchain`s adaptation in the area of interbank payments.
Bahrain has also demonstrated interest in the financial technology sector as it plans to launch its own blockchain trail.
“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.”, commented Khalid Al Rumaihi, CEO of inward investment agency Bahrain Economic Development Board (EDB), as quoted by Arabian Business.
“Blockchain will unlock so many different possibilities for business in the way email and internet did years ago. What would prevent Bahrain from becoming a leader in this space in the same way Singapore is?”, Al Rumaihi added.
Singapore`s pilot is about partner banks depositing cash as collateral with MAS in exchange for MAS-issued digital currency, as announced last year by the central bank’s managing director Ravi Menon quoted in Arabian Business.
Al Rumaihi said that Bahraini government officials have started working to establish a “regulatory sandbox” to allow fintech-related companies to test new business models in compliance with the law regulations in the country, as the article stated.
The Central Bank of Bahrain has also completed a white paper on growing the country`s fintech industry and will share it soon, said Rasheed Mohammed Al Maraj, governor of Central Bank of Bahrain in an interview with Arabian Business.
Other Gulf states like Qatar and the United Arab Emirates have announced plans to invest in the financial technology industry. For example, the Abu Dhabi Global Market (ADGM) has made public its plans to establish a fintech regulator and signed cooperation agreement with major businesses in the sector, explained Arabian Business.