X8, a Swiss cryptocurrency firm has acquired Islamic finance certification for its digital currency. The argument on whether digital currencies are Sharia-compliant or not depends on how compatible it is with the Islamic sheer monetary policies. Some Islamic scholars are of the school of thought which states that crypto trading is equivalent to “transfer of rights,” which is seen as appropriate under the Sharia law.
According to Francesca Greco, the co-founder and director of X8, the cryptocurrency is backed by gold and eight fiat currencies.
One of the plans X8 has is to enlarge its business empire in the Middle East. Its aim is to unveil a cryptocurrency exchange which includes a trading platform compliant with Sharia laws.
In a recent meet-down with Reuters, Greco made it clear that the firm has met with the home-grown exchanges located in Bahrain, Dubai, and Abu Dhabi. “The Gulf region is a really good place for financial technology companies because they all want to become hubs for fintech”, she said.
Similarly in July early in the year, altcoin Stellar (XLM) claimed to be the first blockchain protocol to acquire a Sharia-compliance certification in asset tokenization and money transfer field respectively.
There are several other firms within the sector like NOORCOIN, a crypto utility token which got its Sharia compliance certificate in March by the World Sharia Advisory Committee.
In the same light, early in the year in April, BTC (Bitcoin) was recognized the sharia law as “generally permissible” by an internal advisor to Blossom Finance, a Fintech startup. Muhammad Abu Bakar, sharia advisor has advised traders to desist from purchasing digital currencies for the sake of investment.