Stellar Becomes the First Sharia Approved Distributed Ledger Protocol

According to the official blog post on its website, Stellar becomes the first Sharia approved distributed ledger protocol. Reportedly, Bahrain central bank-licensed Shariyah Review Bureau has assessed the capabilities and use cases of Stellar.

18 July, AtoZ Markets – Stellar is an open-source platform for distributed payments. Now, it reportedly became the first distributed ledger protocol to obtain Sharia compliance certification in the money transfer and asset tokenization sector.

Stellar Becomes the First Sharia Approved Distributed Ledger Protocol 

The official blog post on Stellar’s website states that the Shariyah Review Bureau has assessed the capabilities and use cases of Stellar. The company also states that the international Sharia advisory agency has released an order that enables the deployment of Stellar technology in Islamic financial institutions. 

Shariyah Review Bureau, which is licensed by the Central Bank of Bahrain, has facilitated Stellar to advance its ecosystem in regions where operation in the financial services sector requires compliance with Islamic financial principles. 

This step allows financial institutions in Gulf Cooperation Council and some parts of Southeast Asia to deploy Stellar technology within their Sharia-compliant product and service offerings.

Is Bitcoin halal?

Stellar has called itself “the first” Sharia approved distributed ledger protocol in the sector of money transfers. However, according to some of the online reports, the cryptocurrency NOORCOIN has been certified with a Sharia Certificate from the World Sharia Advisory Committee in March. That time, the coin has called itself “the first sharia-compliant utility token.”

Back in April, Bitcoin has been also recognized as “generally permissible” under Sharia law. The report released by an Internal Sharia advisor to fintech startup Blossom Finance includes a warning. The author of the report, Muhammad Abu Bakar, states that he considers cryptocurrencies to be halal. However, he adds, in most cases, traders should not buy them for investment purposes. 

Earlier last month, the South Korean Blockchain laboratory IncuBlock has inked a Memorandum of Understanding with a Malaysian government advisory committee. The MoU aims to advance the Blockchain technology development permissible under Sharia law. 

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