Swiss-based cryptocurrency firm X8 AG, has obtained an Islamic finance certification from religious scholars for its X8 Currency (X8C). This move for X8 is falling in line with other fintech companies who are looking to break into the Middle East, and the Middle East’s expansion into blockchain and cryptocurrency.
The Shari’a Certificate is issued by the Shariyah Review Bureau (SRB), the world’s leading Sharia Advisor, which is fully licensed by the central bank of Bahrain. In regards to cryptocurrency and tokens, the SRB places digital assets into different categories. They believe that it not possible to regulate all
cryptocurrencies as Shari’a compliant when tokens sales and projects
on blockchains can be structured in various ways, as the nature of different tokens can vary widely in their design and function.
I regards to X8 obtaining the certification, Francesca Greco, X8’s director and co-founder, commented:
The Gulf region is a really good place for financial technology companies, because they all want to become hubs for fintech.
The structure of X8’s stablecoin and token system has a measure of complexity to it, as the company issues both X8X utility tokens (X8X) and X8 Currency (X8C). The X8X token is based on the Ethereum network, and is gold-backed along with eight fiat currencies. The newly Shari’a certified X8C is the company’s stablecoin, which is supposedly is controlled by financial Artificial Intelligence (AI).
The union between the X8X and X8C is slightly convoluted as the X8C can only be traded if the clients can back it up with the equivalent amount of X8X. While the X8C is currently in development, the X8X is available for purchase.