X8 is one of the many companies in the industry that are aiming to expand in the Middle East and are collecting information on how to become Sharia-compliant and attract investors from the region.
Regulators and exchanges are showing more interest in adopting cryptocurrencies and blockchain innovation to drive their businesses further.
Islamic scholars have been assessing the blockchain innovations on religious validity. Islamic investors are more interested in reducing cryptocurrency volatility and regulating the types of assets that are used to back digital tokens.
X8’s hopes are that its Ethereum-based stable coin, which is backed by eight fiats and gold, would be the solution to the Middle East investors’ problems.
Francesca Greco, the co-founder of X8, stated that the Gulf region has the potential to become a cryptocurrency and blockchain hub. Greco also announced that X8 would open an office in the Middle East.
Regulatory institutions in the Gulf region are providing fintech startups and giants a welcoming environment, but prefer stable coin startups, because of the reduced volatility issues.
X8’s plans also include a Seheria-compliant crypto-exchange, after discussions with companies and regulators in Abu Dhabi, Dubai, and Bahrain.
The Shariyah Review Bureau (SRB), an audit company licensed by the Central Bank of Bahrain, gave X8 a certification for its stablecoin and related tokens.
Cryptocurrencies and trading financial assets have been a topic of discussion among Islamic scholars for years.
In the present day, cryptocurrency holding and trading are more and more viewed as “transferring rights of ownership,” which does not offend Islamic religious principles.