The Stellar foundation has today released a statement confirming that its blockchain technology has received formal Sharia Certification from the Central Bank of Bahrain.
The announcement makes Stellar the first cryptocurrency to receive the Islam-compliant certification, and should now – in theory – remove a potential obstacle for its future adoption amongst banking institutions and payment processors operating out of the Middle East.
“The Sharia compliance certification extends to applications and usages of lumens (XLM),” the announcement also confirmed.
In practice, the news means that a long list of countries which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Indonesia and Malaysia will now be able to “integrate Stellar technology in their Sharia-compliant product and service offerings.”
“This is a big advancement for the Stellar network given that these regions are endpoints of popular foreign worker remittance corridors,” the Stellar team goes on to note. The news may also translate into a competitive edge over other rivals competing in the same space, particularly Ripple.
The development, according to some analysts, however, should be seen in the context of adoption of blockchain technology over the longer term, and is unlikely to result in any immediate uptake in the use of Stellar technology itself.