Swiss Crypto Firm X8 Obtains Bahrain’s Sharia Certificationbr>
Switzerland-based crypto firm X8 AG has obtained a sharia-compliant certification for its ethereum-based stablecoin from Islamic scholars.
X8 AG was established to administer and regulate all aspects of the X8currency (X8C) token generation event (TGE) and to provide IT and software solutions for financial portfolio applications. X8Currency is an ethereum token, 100% backed in 8 fiat currencies and gold. Each token is represented with assets deposited on bank accounts. Assets are actively managed by the propriety software, automatic reserve management artificial intelligence (AI). X8C can only be issued or exchanged for fiat with X8X utility tokens.
The company announced that it received certification for X8Currency stablecoin and X8X utility token from the Shariyah Review Bureau (SRB), a consultancy and audit firm licensed by the central bank of Bahrain. The certification will reportedly allow the company to expand its business in the Middle East and attract investors who are wary of crypto price volatility.
Francesca Greco, X8 director and co-founder, said that the company hopes its ethereum-based stablecoin can address concerns over excessive volatility and speculation.
“The Gulf region is a really good place for financial technology companies, because they all want to become hubs for FinTech,” said Greco. “Regulators in the Gulf region have built a welcoming environment for FinTech but they are also being cautious about cryptocurrencies, giving an opportunity for so-called “stablecoins” which are designed to reduce price volatility.”
In addition to a regional office in the Middle East, Greco said that they are planning to launch a crypto exchange that would include a Sharia-compliant component. He added that they are already in talks with local exchanges in Abu Dhabi, Dubai and Bahrain.
In July of this year, blockchain payments platform Stellar became the first distributed ledger protocol to receive Sharia compliance certification in the money transfer and asset tokenization space.