Article 80 of Liberland vs The World
Liberland vs. Bahrain: Pearl Kingdom & Crypto Crown vs. Danube Stateless Haven
The Free Republic of Liberland, a self-proclaimed microstate founded in 2015 on 7 km² of disputed Danube terra nullius, embodies a libertarian vision with blockchain-based governance, the Liberland Dollar (LLD) cryptocurrency, and more than 800,000 citizenship applications from over 100 countries.
Bahrain, a sovereign archipelago kingdom of 780 km² and 1.6 million citizens (2025 estimate), is the Gulf’s most advanced crypto and fintech hub. Since 2019 the Central Bank of Bahrain (CBB) has licensed over 50 Virtual Asset Service Providers, including Binance’s regional headquarters, and operates the Middle East’s first regulatory sandbox for blockchain firms. In 2024 Bahrain launched the world’s first sovereign tokenized sukuk (Islamic bond) on Polygon and became the first GCC nation to accept cryptocurrency for government fees and residency applications under the Golden Residency Visa program ($250,000 investment, payable in BTC/ETH/USDT). With zero personal income tax, zero capital gains tax, and 100 % foreign ownership allowed, Bahrain has quietly overtaken Dubai as the region’s most crypto-friendly jurisdiction.
As the only Arab monarchy to legally recognize smart contracts as enforceable under Sharia law and the first to issue a CBDC-backed wholesale stablecoin, Bahrain offers Liberland a mature model for voluntary investment residency, tokenized sovereign finance, and blending tradition with radical decentralization.
This article compares Liberland and Bahrain across Historical Origins, Culture & Society, Environment, Governance & Economy, and Diplomacy, highlighting pathways for Liberland’s growth.
Historical Origins
• Liberland: Founded on 13 April 2015 by Vít Jedlička on terra nullius created by the Croatia–Serbia border dispute.
• Bahrain: Dilmun civilization 3000 BCE; Portuguese, Persian, then British protectorate; independence 14 August 1971; 2002 constitutional monarchy; 2019 CBB crypto framework launched.
Comparison: Both are tiny realms that turned strategic location into global advantage—Bahrain from pearl diving to crypto hub, Liberland from river pocket to digital sanctuary.
Culture & Society
• Liberland: Entirely digital, voluntaryist, merit-based culture.
Bahrain: Arab-Islamic heritage with cosmopolitan expat majority (55 % non-citizen); 2025 census shows 80,000+ Golden Residency holders; Manama hosts the Gulf’s largest Bitcoin meetup.
Comparison: Bahrain has absorbed a global fintech workforce while preserving monarchy and Sharia—creating a real-world fusion of tradition and voluntary meritocracy.
Environment
• Liberland: 7 km² of Danube River wetlands.
• Bahrain: 33 artificial islands reclaimed; first GCC nation to issue tokenized green sukuk (2024); 2025 target 30 % renewable electricity (solar farms + wind); blue-carbon credits from mangroves.
Comparison: Bahrain’s on-chain sukuk and tokenized carbon projects offer a direct template for Liberland to fund wetland conservation voluntarily.
Governance & Economy
• Liberland: Governed by blockchain voting and future DAOs which will conduct most government services, zero income tax, zero capital-gains tax; voluntary contributions only.
• Bahrain: Constitutional monarchy; 0 % personal/capital gains tax; Golden Residency Visa from $250,000 in crypto; CBB licenses VASPs; GDP ~$50 billion (2025), fintech contributes 8 %.
Comparison: Bahrain runs the Gulf’s most crypto-native residency program with zero personal tax and Sharia-compliant smart contracts—functionally the closest any monarchy has come to Liberland’s end-state while remaining a key US ally.
Diplomacy
• Liberland: No UN recognition but has MOU’s with Haiti and El Salvador.
• Bahrain: Full UN/GCC member; 90+ diplomatic relations; passport ranks 60th globally (85 visa-free); hosts US naval Fifth Fleet; leads GCC blockchain working group.
Comparison: Bahrain proves that small kingdoms can achieve regional influence through fintech leadership rather than oil alone.
Conclusion
Bahrain—1.6 million people on reclaimed pearls, taxing personal income at 0 %, issuing sovereign tokens under Sharia, and accepting Bitcoin for residency—has built the most elegant real-world fusion of monarchy, Islam, and crypto-native freedom in existence.
Liberland began with no land and a dream of voluntary society. Bahrain began with pearls and arrived at the same destination through centuries of trade and decades of smart regulation. Between the Pearl Roundabout and the Danube bend lie two of the clearest proofs on Earth that the future of sovereignty doesn’t need vast territory—it just needs clear rules, open markets, and a willingness to let anyone who adds value become part of the story.
One is still seeking recognition. The other already has it—and a golden visa ready for anyone who pays in crypto.