The California-based cryptocurrency firm Stellar has become the first Sharia-certified blockchain for payments and asset tokenization, as Islamic scholars give the blockchain platform Islamic certification.
In an announcement on its website, Stellar said it had advanced its mission of making financial access and inclusion available to serve all geographies, ethnicity, wealth classes and religions, by obtaining a Sharia compliance certification for the Stellar technology and network.
The certification covers Stellar’s native currency, Lumens, which, with a market capitalization of $4.3 billion, is the seventh largest cryptocurrency in the world.
The Shariyah Review Bureau (SRB), a Sharia advisory agency which is licensed by the Central Bank of Bahrain, said it has examined Stellar’s applications and has propagated guidelines and guidance to allow the deployment of Stellar technology in Islamic financial institutions.
During forthcoming months, members of the Stellar Development Foundation will collaborate with financial institutions around the world to determine how to use Stellar technology in Islamic financial institutions.
Bringing greater diversity to the Stellar ecosystem
Stellar shared its excitement of acquiring Sharia compliance certification, stating:
“We’re excited to add even greater diversity and inclusion into the Stellar ecosystem.”
Stellar’s ground-breaking move into Islamic markets secures the company’s position as a dominant force in the cryptocurrency industry. Last year, the firm signed a deal to partner with tech giant IBM, a move which consolidated Stellar lumens as being widely recognized as one of the top ten cryptocurrencies.
Stellar Lumens are designed to transfer money fast, securely and at a low cost. Much of the appeal of the Stellar platform includes transactions being made in less than five seconds, virtually zero transaction costs, and the capability of handling 200 transactions every second.
Crypto moving into Middle Eastern markets
Stellar is the first distributed ledger platform to acquire a Sharia compliance certification within the cryptocurrency market. The move highlights how financial technology companies are widening their reach to include growth in Middle Eastern and Southeast Asia markets.
It seems, at last, the unique appeal of digital currencies are being recognized and lapped up by communities of greater religious, ethnic and geographical diversity. The Stellar blockchain platform Islamic certification should be welcomed by Muslims the world over.
Gabrielle Pickard-Whitehead is a freelance journalist and copywriter based in the Peak District, UK. Since 2006, Gabrielle has followed her passion for writing and has sculptured a rewarding career out of her love for the written word. Gabrielle thrives on creating compelling content related to current affairs, politics, financial news and the latest advancements in technology and innovation. Gabrielle is excited about having the chance to write about the constantly-evolving world of crytocurrency and enabling people to learn more about this rapidly-advancing digital asset.