Algorand (ALGO) Obtains Sharia-Compliant Status, Welcoming Islamic Institutions On-Board
Broadly speaking, the Western world and the Islamic world are two very different worlds indeed. To operate in the Islamic financial market, companies need to gain a Sharia certification. The Algorand Foundation, a proof-of-stake blockchain, has recently announced that it had achieved just that during a press release on the 21st of October.
Algorand was determined to gain this certification due to them being able to recognize the Islamic market’s global importance. The foundation with the help of the Shariya Review Bureau (SRB), where they took on the role of independent advisor for the company. Algorand then was able to adopt the network to work with the procedures of Sharia-compliant financing.
Even if the Algorand platform itself has achieved Sharia certification, it won’t be the case for the decentralized applications that are built on it. Each and every one of them needs to be individually evaluated and vetted for Sharia compliance.
Steve Kokinos, Chief Executive Officer of Algorand, gave a statement about the matter. He expressed his pleasure upon hearing that the certification of the Algorand Foundation had worked and that the blockchain network is now usable by everyone. He explained that Algorand’s vision was always one of absolute inclusivity. Kokinos said that, with the Islamic financial markets growing as they were, he was excited about these new enterprises being able to use Algorand.
Since its inception in June 2019, Algorand has only been growing. With the ecosystem’s Sharia certification, Algorand now has the right to do business with Islamic institutions, not only with their platform but beyond that as well.
Yasser S Dahlawi, CEO and Founder of SRB, released a statement regarding Algorand as well. He expressed the SRB’s delight over Algorand’s technical achievements. He hopes for the future to hold Algorand to become the secure, scalable blockchain platform that will serve Islamic financial markets. He explained that the SRB is willing to assist any institution wanting to build something on the Algorand Platform while maintaining Sharia compliance for their business models.
With its headquarters in Bahrain and subsequently holding a license through the Central Bank of Bahrain, the SRB has served Islamic financial markets for more than 14 years. The Sharia certification and auditing services they perform is globally recognized, due to the SRB taking no half measures.
They make use of nineteen countries to pull scholars from, ensuring that their certification is true to the Islamic code of conduct. The SRB has long served Takaful firms, asset management firms, and Islamic banks, but that isn’t their full scope. They’ve been participating with fin-techs as well.
Firms like Stellar, Beehive, Wethaq, and Raqamyah have all been aided via the SRB. They have certified quite an exciting set of technologies, as well. SRB has already done everything from P2P lending to approving so-called “smart contracts” under the Sukuk platform's disruptive framework. They even achieved digital monetization of undeveloped oil reserves.