Islamic finance strictly governs speculative investing – a hurdle for cryptocurrency firms. A Swiss firm clinched the nod for a Middle Eastern expansion.
A digital currency launched by Zug-based crypto firm X8 has won backing that it is sharia-compliant, and plans to expand in the Middle East as a result, co-founder Francesca Greco told news agency «Reuters».
The Bahrain-licensed Shariyah Review Bureau has issued X8 with a certification that its offering doesn't contravene Islamic laws. X8 issues a so-called stablecoin based on eight fiat currencies, and gold. Combined with artificial intelligence, the ethereum-based cryptocurrency is meant to sustain extreme price swings, according to the firm.
Skepticism an Advantage
The Swiss fintech plans to open an office in the Middle East this month, Greco told the news agency. The region's general skepticism towards cryptocurrencies is an advantage for firms like X8, which are selling products aiming to stunt the volatility of the burgeoning asset class.
X8 also wants to launch a crypto exchange with sharia-compliant elements. It has begun talks with local exchanges in Abu Dhabi, Bahrain and Dubai stattgefunden, Greco said.
