The burgeoning crypto landscape of the Middle East region is now witnessing significant crypto adoption. Besides the UAE, Bahrain is also moving forward by recognizing the importance of cryptocurrencies. The Shariyah Review Bureau of Bahrain (SRB) has confirmed XRP as Shariah-compliant, potentially paving the way for its entry into the Islamic finance sector.
In finance, Shariah is the body of Islamic laws and principles that ensure transactions are ethical, transparent, and free from interest, extreme uncertainty, or gambling.
“XRP is the native token and is intended to act as a “bridge” between hard-to-match fiat currencies. As such, the XRP token has a Shariah-compliant utility and can be deemed Shariah-compliant”, read the official statement from Shariah Review Bureau.
XRP’s Shariah compliance fuels credibility
As Ripple’s XRP receives official certification from the SRB, its credibility is expected to increase in the Islamic markets of other Gulf regions. Financial analysts believe that XRP’s shariah-compliant credit will unlock the crypto’s access to $2 trillion Islamic finance market.
Beyond an impactful move in finance, certifying XRP strengthens Bahrain’s reputation as a progressive fintech hub. Moreover, this certification could push other Gulf countries to adopt cryptocurrencies under Shariah compliance.
XRP has already planted its roots in the UAE through various collaborative initiatives. It has partnered with the Dubai Land Department to digitize property title deeds on the XRP Ledger. XRP’s Ripple has integrated with Zand Bank and Mamo to execute cross-border blockchain payments using its blockchain infrastructure.
