According to an Arabian news media, Bahrain has had talks with the central bank of Singapore in a plan to build a pilot blockchain project in the Gulf state.

Bahrain is planning to become a pioneer in the burgeoning ‘fintech’ space and is looking for the adoption of blockchain technology, Khalid Al Rumaihi, CEO of inward investment agency Bahrain Economic Development Board (EDB), stated during the GCC Financial Forum in Manama.

“We are in talks with a group of people from the central bank of Singapore, which began its own blockchain project for bank transactions 18 months ago and is making huge progress,” Al Rumaihi said. “The ability for blockchain to be adopted at the country level is a huge opportunity for Bahrain to move into the spotlight as a pioneer in this space.”

The Monetary Authority of Singapore (MAS), along with Singapore's stock exchange and eight local and foreign banks, have been working and are in the midst of a project to use blockchain technology for interbank payments. With this inspiration, Bahrain is looking to develop its own blockchain trial.

Al Rumaihi mentioned that the whole financial services sector is on the verge of ‘disruption by fintech’ and must rapidly adapt to the changing technologies. He also added that blockchain will unlock various possibilities for business.

Although Al Rumaihi did not give any firm indication whether the Central Bank of Bahrain was angling to become MAS’ proposed foreign partner, he stated that Bahraini government officials were working to establish a ‘regulatory sandbox’ in a move to allow fintech startups and entrepreneurs to test new business models and products.

The GCC Financial Forum also saw Central Bank of Bahrain governor Rasheed Mohammed Al Maraj where he revealed that the bank had completed a white paper on growing the country's fintech sector and is preparing to share it with partners shortly.