Stellar.Org, the seventh-largest cryptocurrency network, has become the first digital ledger technology (DLT) protocol to obtain Sharia certification for Blockchain, according to CryptoCoinsNews.
The Stellar Development Foundation announced last month that the Sharia Review Bureau (SRB) had certified Stellar as a Sharia-compliant vehicle for conducting transfers and turning real-world assets into digital tokens
The Central Bank of Bahrain certified SRB’s certification of Stellar’s Blockchain protocol. Stellar will be able to enter partnerships with Islamic financial institutions throughout the Middle East and Southeast Asia.
Cryptocurrency has long been a topic of debate among Islamic scholars. Some question whether the asset class’ volatility makes it tantamount to Islamically forbidden usury.
However, earlier this year an Islamic scholar and Sharia compliance officer in a Jakarta-based investment firm published a paper that argued that bitcoin is Halal (permitted) for investors. Some countries recognize it as legal currency and widely accepted for payment in others.