With the Central Bank of Bahrain issuing a new organizational framework for the license and control of stable currencies, the Kingdom of Bahrain has allowed the issuance of encrypted currencies fully supported by only one currency such as the Bahraini dinar or the US dollar, or even gold.
Thus, the Kingdom will also be the second country in the region to allow the issuance of encrypted currencies of this type after the United Arab Emirates, where IE Coin, AE COIN, obtained in December last year the final license from the Emirates Central Bank to start issuing the first stable digital currency in the country bearing the name “AE Coin”, and the value of each unit of IECON is equivalent to one Emirati dirham, which makes it a stable and reliable financial tool It can be relied upon in various economic sectors.
In fact, the issuance of this new organizational framework is the stable cryptocurrency in the Kingdom of Bahrain is an important and important sign in the development of the digital financial sector, and reflects Bahrain’s vision in supporting innovation and promoting the digital economy, with a focus on providing financial solutions that keep pace with the times and meet the needs of users in Bahrain and abroad.
Stablecoins is a type of digital currency designed to maintain a stable value for a specific origin, often the US dollar or gold. It aims to combine the stability of traditional currencies with the efficiency of digital currencies, and these currencies are characterized by the possibility of trading in them just as traditional currencies, and provide protection for the value of the assets from market fluctuations, and it is possible to make rapid international transfers through them at a low cost.
It is expected that we will soon see requests by different companies to issue stable cryptocurrencies from the Kingdom of Bahrain, and this is necessary to continue leadership in the field of digital financial transformation, especially after Bahrain has managed since 2017 to establish an experimental control environment in the Gulf of Bahrain Financial Technology, and to develop legislation organized for the work of financial technology companies «Fintak», and many of these companies have licensed their business in Bahrain, and expanded to work in the countries of the region.
In conjunction with the announcement of the issuance of the organizational framework for stable cryptocurrencies, the Central Bank of Bahrain also announced the registration of a strong batch of licenses of financial institutions from the beginning of 2024 until mid -2025, where 16 new financial institutions were approved, while 52 licensing requests are still under study in the advanced evaluation stages, and it is expected that these institutions will contribute to creating more than 850 jobs in the initial stages, with the possibility of providing more opportunities Functional with the expansion of its work in the future.
The Bahraini banking sector has always been a pioneer for more than a hundred years, since its inception with the establishment of the eastern bank -Standard Chartard currently -and then the great renaissance that he witnessed in the 1970s when he managed to attract many of the offices, and now this sector continues its endeavors towards leadership through bold and studied initiatives, including stable cryptocurrencies.
