Crypto Clarity
Gulf's First Rulebook for Digital Money
Bahrain has become the first country in the Gulf to issue clear rules for a new kind of digital money known as stablecoins, a move that puts it ahead of neighbours in safely managing digital finance.
Stablecoins are a form of online currency tied to regular money like the US dollar or Bahraini dinar. People use them for quick, low-cost transactions, including sending money across borders. But without proper rules, these digital coins can be risky.
To fix that, the Central Bank of Bahrain (CBB) has launched a new rulebook that tells companies how they can issue these coins safely. The rules say each digital coin must be backed by real money held in reserve and must be easy to convert back to cash. Companies must also be audited and follow strong safety and transparency standards.
'This milestone reflects the pioneering role the CBB continues to play,' said Mohamed Al Sadek, Executive Director of Market Development.
The rules do not allow risky types of digital coins, such as those that rely on complicated software tricks to stay stable, one of which infamously crashed in 2022.
While the UAE regulates some digital money, Bahrain is the first to publish a full guide for companies wanting to offer them in different currencies.
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Crypto Clarity
TDT | Manama Gulf's First Rulebook for Digital Money Bahrain has become the first country in the Gulf to issue clear rules for a new kind of digital money known as stablecoins, a move that puts it ahead of neighbours in safely managing digital finance. Stablecoins are a form of online currency tied to regular money like the US dollar or Bahraini dinar. People use them for quick, low-cost transactions, including sending money across borders. But without proper rules, these digital coins can be risky. To fix that, the Central Bank of Bahrain (CBB) has launched a new rulebook that tells companies how they can issue these coins safely. The rules say each digital coin must be backed by real money held in reserve and must be easy to convert back to cash. Companies must also be audited and follow strong safety and transparency standards. 'This milestone reflects the pioneering role the CBB continues to play,' said Mohamed Al Sadek, Executive Director of Market Development. The rules do not allow risky types of digital coins, such as those that rely on complicated software tricks to stay stable, one of which infamously crashed in 2022. While the UAE regulates some digital money, Bahrain is the first to publish a full guide for companies wanting to offer them in different currencies.
