A Swiss-based fintech and cryptocurrency startup, X8 AG, has been able to acquire a certification fully licensed by the Central Bank of Bahrain from the Shariyah Review Bureau for its digital currency. According to a recent report by Reuters, this move is assumed to be part of its plans to expand its reach to the Middle East and attract Islam Investors.
The first ever cryptocurrency with an affiliation with Islam or Sharia, in this case, was Onegramcoin- an idea brought to life by a man called Ibrahim Mohammed who, at the time, wanted to do the Islamic world proud. This coin was the first to be sharia-compliant and at the same time backed by gold.
Multiple Fintech companies are fast adopting Sharia-compliance finance, and these Middle East market participants and regulators seem to be enticing new businesses. As it is, X8, a cryptocurrency firm based in Switzerland has become the most recent firm to obtain an Islamic finance certification.
Not long ago, a certification was also issued to Lumens (XLM) and its parent platform Stellar by the Shariyah Review Bureau.
X8’s co-founder and director, Francesca Greco, commented on the matter and described the Gulf region as a really viable place for companies involved in financial technology. She added by attributing this reason to being all of them wanting to be fintech hubs.
Greco feels the Gulf region has been able to develop a viable and suitable environment for fintech companies while being cautious about cryptocurrencies. This, in turn, provides for stablecoins the opportunity to flourish.
It is pertinent to note that the X8X token based on Ethereum network is a cryptocurrency issued by X8. This token is also said to be backed by gold and eight fiat currencies.
Utility & Currency X8 Tokens
X8’s digital token happens to be a little more complicated than expected. In addition to the X8X which was earlier mentioned, X8 also issues an X8C currency. The former is called the X8X utility token listed on CoinMarketCap while the latter is the X8 Currency which is the Stablecoin being talked about.
As seen on the company’s website, the X8C features items like Automatic Reserve Management (ARM) and is managed by financial Artificial Intelligence (AI).
With these amazing qualities not being enough, it is labeled by their website as the “most stable Crypto Currency.” In addition to all these, the currency is also Shariah-compliant.
On the downside, the X8C which is the stablecoin can only be traded if the holder possesses the corresponding amount of the utility token (X8X). Fantasizing enough, X8X which is the utility token and whose core’s function is to enable the trade of X8C is already up for public sale while the currency itself -X8C is “coming soon”. This information is as seen on the official website for the project.