Stellar Becomes the first Distributed Ledger Protocol to Receive Sharia Certification
Stellar has become the first distributed ledger protocol to receive Sharia compliance certification in the money transfer and asset tokenization case.
The official announcement was made via the Twitter handle of Stellar:
Stellar is the first distributed ledger protocol to receive Sharia compliance certification in the money transfer and asset tokenization space.
Read more: https://t.co/FYiRmGxt6y
— Stellar (@StellarOrg) July 17, 2018
The Sharia compliance certification extends to applications and usages of lumens (XLM).
The founding mission of the Stellar Development Foundation is to promote global financial access and inclusion. It enables institutions to provide reliable and low-cost financial technologies to serve all ethnicities, geographies, wealth classes, and religions, by building open-source public software.
By obtaining a Sharia compliance certification for the Stellar technology and network, Stellar Development Foundation has inched towards its goal of ensuring financial inclusion and financial access. The Shariyah Review Bureau (SRB) has reviewed the applications and properties of Stellar. The Shariyah Review Bureau (SRB) is a leading international Sharia advisory agency which is licensed by the Central Bank of Bahrain. SRB has publicized guidance and guidelines that enable Sharia-compliant applications of Stellar technology in Islamic financial institutions.
Benefits of receiving Sharia compliance certification
The certification obtained by Stellar, in partnership with SRB, will help expand the Stellar ecosystem in regions where financial services require compliance with Islamic financing principles. For example, Islamic financial institutions in the Gulf Cooperation Council (i.e. Bahrain, Saudi Arabia, Kuwait, Qatar, Oman, UAE) and parts of Southeast Asia (e.g. Indonesia and Malaysia) will now be able to integrate Stellar technology in their Sharia-compliant product and service offerings. The move is a big advancement for the Stellar network considering that these regions are endpoints of popular foreign worker remittance corridors.
Members of the Stellar Development Foundation, in the next few months, will meet global financial institutions and engage them on how to best utilize Stellar in their Sharia-compliant financial products and services.
The stellar network is excited about this certification as it adds greater diversity and financial inclusion in the ecosystem of Stellar.
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