According to Reuters, a cryptocurrency company X8, based in Switzerland, got a certification from the Shariyah Review Bureau. That is a Shariah advisory firm licensed by Bahrain’s central bank with offices in United Arab Emirates, Saudi Arabia, Bahrain, Egypt, United Kingdom and USA.
The X8 firm itself provides value preservation payment tokens that mitigate risks of devaluation, combining with fiat, gold and risk management software. How it comes from the official webpage of the project, it has already developed two kinds of tokens on Ethereum:
- X8Currency token means to be connected with 8 cash currencies and gold;
- Another, X8X Utility token, is the clue to X8C issuance and exchange process without any fees.
The certification from Islamic scholars can become a further step for widespread and integration of the cryptocurrency businesses in the Middle East, where the attitude towards crypto is quite cautious and distrustful. This approach to digital currencies comes from religious beliefs and the controversy regarding prohibition of direct monetary speculation. These contradictions are likely to be solved if the cryptocurrencies trade is compared to the transfer of rights, what does not contravene the religious provisions.
Nevertheless, the fintech companies are mostly welcomed in the Gulf region, demonstrating more goodwill to “stablecoins” with their ability to reduce volatility of prices. Therefore, the compromise in this sensitive issue can be found, stimulating new businesses establishment and encouragement in the Middle East.
The Gulf region is a really good place for financial technology companies, because they all want to become hubs for fintech.
Francesca Greco, X8 director and co-founder of the company
The X8 project also plans to open a regional office in the Middle East this month. Furthermore, its team is now thinking of the crypto exchange launch, including Sharia-complying component, coming through discussions with local exchanges in Abu Dhabi, Bahrain and Dubai.