A Switzerland-based fintech firm has got certification from the Islamic scholars for its digital currency that it has plans to launch in the Middle East with the significant business outreach in the region.
As indicated by Reuters, X8 AG is one of the many companies expanding into Sharia-compliant finance for tapping into the rapidly growing crypto as well as blockchain industries in the Middle East. Ultimately, Islamic scholars have been proposed to measure crypto-currencies as well as blockchain startups for their validity on religious grounds.
Based in Zug, a Switzerland crypto valley, X8 AG touts itself being a pioneer of a unique class of stable tokens. The blurb on its website says that it provides;
“A revolutionary new store of value for the distributed and traditional economy brought to you by the ultimate currency. The X8 Project developed two Ethereum based Tokens: X8Currency that is fully backed with eight fiat currencies + gold and X8X Utility Token that functions as a key to the issuance and exchange process of X8C with 0% fee.”
Francesca Greco, the co-founder, told the reporters that “The Gulf region is a perfect place for financial technology companies because they all want to become hubs for fintech,” adding that a regional office would be opened later this month.
Though the regulators of the region have been welcome of blockchain investment, they are still concerned over the volatility of digital currencies. Hence, it’s the rising opportunity for more stablecoins. Also, X8 AG plans to launch a Sharia-compliant crypto exchange and in addition has entered into the talks with exchanges in Bahrain, Dubai and Abu Dhabi.
The report goes on to the state which an Islamic advisory firm authorized by the central bank of Bahrain, has dependably issued certification for its cryptocurrency. Many scholars see trading crypto affiliated to the transfer of rights that is permissible under Islamic law.