The price of Stellar (XLM) cryptocurrency increased by 38% after Bahrain acknowledged that the token is in compliance with Sharia law. According to CoinMarketCap, on Tuesday, XLM was trading about $ 0.23, but on Wednesday showed a maximum just below $ 0.32, pushing Litecoin out and coming in sixth place in the rating on capitalization.
Stellar Foundation achieved the certification of Stellar’s blockchain organization Shariyah Review Bureau (SRB), which means that the asset fully complies with the Shariah legal norms. It is alleged that this is the first case of obtaining a certificate of compliance with Sharia law with a cryptocurrency protocol for remittances.
The Shariyah Review Bureau is one of the largest players in the field of sharia law in the Middle East and is licensed by the Central Bank of Bahrain. Representatives of Islam have always been ambiguous about the digital currencies and the technology of the distributed registry that lies at their base.
Stellar’s certification from the Shariyah Review Bureau can close the controversial issue of cryptocurrencies in Islam. Representatives of the organization consider the transfer of Stellar (XLM) tokens a similar transfer of rights, and this form of economic activity is acceptable for Islam.
For Stellar, obtaining a certificate means being able to expand in markets that require compliance with Islamic principles: in the countries of the Cooperation Council in the Arab States of the Persian Gulf (Bahrain, Kuwait, Saudi Arabia, Qatar, the United Arab Emirates and Oman) and some countries in South-East Asia.
The Stellar Foundation said that during the next few months, several meetings will be held with delegates from global financial institutions, where the development of Shalliat products and services based on the Stellar Protocol will be discussed.
The multicurrency platform Stellar was founded by Jed McCaleb as a branch from Ripple in 2014. Subsequently, I switched to my own protocol with open source. It positions itself as a complete clone of the Ripple system, but without its inherent flaws.
The platform is designed to work with different currencies and is equipped with its own decentralized exchange. Stellar serves as a link between the fiat currencies, allowing for an almost instantaneous exchange. In this case, neither the sender nor the recipient directly contact the cryptocurrency. Source: fxteam.ru