Startup From Switzerland Issues Token For Islamic World
X8 AG, a fintech-company from Switzerland, has designed a stablecoin that meets the norms of Sharia, required in the economy of Islamic countries, Reuters reports.
The startup received a certificate from the Shariyah Review Bureau (SRB), which operates under a license from the Bahrain’s central bank and advises on Islam issues.
Islam does not recognize digital currencies as valid, since they are extremely volatile and carry risks of speculation. However, the head of the project, Francesca Greco, believes that the stablecoin by X8 can dispel these doubts. The new Ethereum-based token is backed by eight fiat currencies and gold. Although local authorities are wary of cryptos, they feel positive about stablecoins that are aimed to reduce volatility, Greco added.
The firm is planning to expand across the Middle East. It is noted that several fintech companies are also striving to act in the legal field of Sharia, since regulators in these countries facilitate the growth of business and attract innovation to the financial sector.
As Francesca Greco pointed out, the Gulf countries want to be a hub of financial technology. She added that X8 will open an office in this region by the end of November 2018. The startup is also preparing to launch a crypto platform compliant with Sharia.
At the end of August 2018, the ADAB Solutions financial company from the United Arab Emirates announced its plans to open the first exchange, providing exclusively halal services allowed in the Muslim world. Projects that offer forecasting services and loans at very high interest rates will be prohibited.
Previously, UAE Securities Exchange drew up regulations for issuing crypto assets.