Algorand obtains certification for Sharia-compliant financing
- Each decentralized application built on Algorand will need to be evaluated and inspected individually for compliance.
- The Alogrand Foundation enlisted Bahrain’s Shariyah Review Bureau (SRB) as an independent advisor.
The Alogrand Foundation has recently announced that the network is certified for Sharia-compliant financing. As per a recent press release, Islamic institutions can utilize the proof-of-stake Algorand blockchain for economic exchange. It states:
Islamic enterprises will now be able to realise new business opportunities on a platform that is congruent to their finance guidelines.
Despite getting the certification, each decentralized application built on Algorand will need to be evaluated and inspected individually for compliance. The Alogrand Foundation perceives the significance of Islamic financial markets to the global economy. For this reason, the platform has enlisted Bahrain’s Shariyah Review Bureau (SRB) as an independent advisor to ensure that the network stays compliant.
Cointelegraph had previously reported that Wethaq, a fintech company based in Dubai, collaborated with enterprise software firm R3. They aimed at developing a platform built on R3’s enterprise blockchain platform Corda. The platform will issue and trade Sukuk securities — Islamic financial certificates that are similar to bonds.