Stellar Procures Bahrain’s Sharia Certification for Payments and Asset Tokenization from Shariyah Review Bureau
Stellar development foundation, the body which is known for developing the Stellar Lumens (XLM) cryptocurrency, has become the first DLT (Digital Ledger technology) protocol to procure the Sharia certification for assets and Tokenization payment.
The stellar development foundation came up with an announcement stating that the SRB has certified Stellar as a Sharia-compliant platform for carrying out the monetary transfers and Tokenizing real word assets. The SRB has also emphasized the review of Stellar network and its products, which includes the usage of XLM. On a side-note, the users of Stellar must be proactive to go through the Islamic financial principles in order to be
informed of any changes, if introduced.
The certification conferred to the company by Shariyah Review Bureau (SRB) is licensed by the Central bank of Bahrain. According to the company officials, the SRB, which operates a Sharia consulting practice will help the team in developing partnerships with Islamic financial institutions spread over the Middle East and Southeast Asia. The SRB has put forward a 16-page document to justify the act of conferring the Stellar a share certification. The 16-page document laid forward by the SRB elucidates the cryptocurrency and its application in relation to the standards published by the non-profit body, the Accounting and Auditing Organizations for Islamic financial institution.
Cryptocurrency for long has been a hot topic of debate for the scholars globally and things are no different for Islamic scholars. They too have their opinion in relation to the implication of Sharia on cryptocurrencies. Earlier this year, one of the most talked about Islamic scholars, Mufti Muhammad Abu Bakar, a Sharia compliance officer of a Jakarta-based investment firm, Blossom Finance, had published a paper. According to which, Bitcoin is permitted for a potential investor and to support his argument, he cites the reference of other countries where the digital currency is considered legal.