Breaking News: X8 AG’s Certification
Switzerland’s own X8 AG has just scored a significant win. The fintech firm received the coveted Shariyah Review Bureau (SRB) certification for its Ethereum-based stablecoin, according to a report by Reuters UK on November 12. This certification isn’t just a fancy badge; it’s a crucial step in attracting a broader, more diverse clientele who prioritize Sharia compliance in their investments.
Understanding the Shariyah Review Bureau
For the uninitiated, the SRB is no small fry in the world of Sharia consultancy. Licensed by the Bahrain central bank, it boasts a strong presence across twelve countries and commands a hefty market share—in fact, over 13% of Saudi investment companies. Talk about credibility! They ensure that financial products align seamlessly with Islamic law, particularly crucial in crypto where speculation runs rampant.
The Sharia Compliance Debate
However, the road to crypto compliance isn’t all smooth sailing. The compatibility of cryptocurrencies with Islamic prohibitions against monetary speculation has sparked heated debates among scholars. Some argue that trading in cryptocurrency can be viewed as the ‘transfer of rights,’ a concept that’s acceptable under Sharia law. It’s as if the crypto world was waiting for a stamp of approval from the Sharia jury!
X8’s Innovative Approach
Francesca Greco, the brain behind X8 and its co-founder, claims their stablecoin is designed to tackle the volatility concerns head-on. By backing their crypto asset with a mix of eight fiat currencies and gold, they aim to ease the worries of Islamic advisors who raise red flags over fluctuating crypto markets. Now that’s what we call innovation!
Going Big in the Middle East
With an eye on expansion, X8 is not just sitting pretty on its new certification. Plans are in motion for launching a crypto exchange with a Sharia-compliant trading platform in the Middle East. Greco earlier revealed to Reuters that they are already in talks with local exchanges in hotspots such as Abu Dhabi, Dubai, and Bahrain. The Gulf region is becoming a fintech hotspot, and X8 AG is ready to dive in!
Other Contenders in Sharia-Compliant Crypto
They’re not alone in this venture. The crypto space is buzzing with companies vying for Sharia certifications. Stellar (XLM) pulled off a similar feat earlier this year, claiming to be a pioneer in money transfer and asset tokenization in compliance with Sharia. Meanwhile, Bitcoin was acknowledged as generally permissible under Sharia law, with experts emphasizing the importance of not using it for investment speculation.
In a world rapidly shifting towards digital currencies, maintaining compliance with religious standards is not just a trend—it’s a necessity for many. With firms like X8 AG leading the pack, the future looks promising not only for crypto enthusiasts but also for those seeking financial products that align with their values.
