Bahrain Central Bank Recognizes Stellar As First ‘Sharia Compliant’ Blockchain
The Central Bank of Bahrain has reportedly approved one of the top ten cryptocurrency projects, Stellar, as Sharia Compliant.
The certification grants Stellar the eligibility to enter the remittance market in the Gulf region. Significantly, Stellar.org can show the Sharia certification without conflicting with the CBB.
This is an exciting development for the industry as the use of virtual currency is uncertain in many areas of Islam due to their highly volatile and unregulated nature. Hopefully, Stellar’s adoption is likely to set a precedent for the acceptance of other blockchain projects in the future. A spokesperson from Stellar is reported by the News of Bahrain to have said:
“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.”
The spokesperson further noted that the Sharia compliance certification extends to applications and usages of Stellar Lumens (XLM), the native currency of the Stellar network. XLM currently sits at the 6th position in the ranking of cryptocurrency projects with a market cap of around $5 billion. XLM/USD is trading at $0.27 at the time of writing.