Bahrain Central Bank (CBB) reported earlier today, on August 1, that they have officially approved Stellar.org project as Sharia Compliant. The recent news means that Stellar is now entitled to carry a Sharia Certification which makes the project approved by Islamic law. The recent announcement is especially important, as due to their nature, cryptocurrencies are highly restricted in many Islamic countries and territories. The key risks with the industry are, as known, seen within risks connected with terrorism and money laundering.
The announcement also passed the official message from the foundation which stated: “we advance our mission of financial access and inclusion by obtaining a Sharia compliance certification for the Stellar technology and network. The Shariyah Review Bureau (SRB), a leading international Sharia advisory agency licensed by the Central Bank of Bahrain, has reviewed the properties and applications of Stellar and has promulgated guidance and guidelines that enable Sharia compliant applications of Stellar technology in Islamic financial institutions”.
There are many important opportunities becoming available for the cryptocurrency as the recent announcement was out as now individuals interested in the industry and wishing to invest in cryptocurrencies, will have the chance to explore the entire industry via Stellar and its XLM coin. This is a good market for the company hence many opportunities are promised to follow.
“Stellar is the first distributed ledger protocol to receive Sharia compliance certification in the money transfer and asset tokenisation space. Additionally, the Sharia compliance certification extends to applications and usages of lumens (XLM)”, concluded the official message by Stellar.
In addition, CBB making this move can be also viewed as a settlement of standard which may be also adopted in many other Islamic countries worldwide. And hence this promises even larger markets for the cryptocurrency.