Stellar on Sharia platform, Lumen for Dinar
Stellar, a Californian blockchain platform has received the endorsement of the MENA region for Sharia transactions.
Stellar is perhaps the first exchange of its kind to be permitted by the region to integrate with the unique, Islam-based financial system. The platform working on blockchain technologies will not offer its native coin, the Lumens to traders and users in the Middle East and Southeast Asia region (MENA).
The purpose of the certification is to allow financial technology that it’s taking the global markets by the storm will set up shop in the protected and conservative market regions of the Middle East. The reason for the certification is the validation of the use of the distributed database with sharia by Islamic scholars. Their approval has now set the scene for the regions crypto curious and the serious traders to commence official transactions against their native currency.
Stellar in steady talks with MENA
In the past year, Stellar had been engaged in discussions with the financial industry stakeholders in the Gulf region. According to the Director of Partnership, Lisa Nestor, the parley between financial houses and firms needed the certification by sharia clerics in order to further resolve issues of collaboration between Gulf fintech interests and crypto coin holders.
As Nestor says, “We have been looking to work with companies that facilitate remittances, including in the United Arab Emirates, Saudi Arabia, and Bahrain. It’s a huge market.”
Stellar is 7th largest cryptocurrency
Stellar has $4.3 billion market cap and is the seventh most popular cryptocurrency in the industry. The ledger-based coin operations can be used for all types of transactions including cross-border payments. They are typically used in asset digitization, and the firms will also have an ongoing partnership with technology giant IBM for developing a range of blockchain technology apps.
Thus far, the cryptocurrency industry has had a great phase of development with prices of two key coins – bitcoin and Ethereum- achieving bumper prices in 2017. New coins, without asset-base, leveraged this price point to enter markets, and miners invested heavily in engaging in generating more of these high-value assets. The result of the parallel development in the time frame resulted in prices falling drastically. Additional pressure came in from a pending regulatory crackdown as well.
The prices have now reached the maturity stage, according to analysts, and the industry is stepping into an accelerated growth phase and thereby setting the pace for institutional development for bitcoin and other currencies.
However, the Gulf region to has its set of detractor forces, in the form of multiple regulatory organs. There is a tinge of skepticism about mined and artificially generated currency as the basis for commodity trading and economy activities. However, with Bahrain reaching out to experiment with this technology, the regional hub to has come under the endorsement by the clerics to allow the new currency method to operate in the region.
Saudi Arabia already with Ripple
The Gulf is not the first local financial hub to welcome bitcoin transactions. Saudi Arabia has already collaborated with Ripple; another USA based crypto coin in February of 2018. These payments are being used by the Sultanate to settle payments by banks.