- In jurisdictions or institutions that require adherence to Islamic law, XRP can now be used in financial services and transactions without conflicting with religious principles against interest, excessive risk-taking, and other prohibitions
- The validation unlocks access to the $2 trillion Islamic finance market (banks, funds, and remittances), especially in the Gulf region
- XRP community is now hopeful that this certification could catalyze a resurgence of institutional and retail interest in XRP from the Middle East
The Shariyah Review Bureau (SRB), under the Central Bank of Bahrain, has formally confirmed that XRP satisfies Shariah compliance requirements.
This means that in jurisdictions or institutions that require adherence to Islamic law, XRP can now be used in financial services and transactions without conflicting with religious principles against interest, excessive risk-taking, and other prohibitions.
The validation unlocks access to the $2 trillion Islamic finance market (banks, funds, and remittances), especially in the Gulf region, where Shariah compliance is a major barrier to crypto adoption.
Unlike other Gulf countries taking a slower approach, Bahrain’s move demonstrates that the country is keen to be a leader in digital change.
Related: XRP Market Structure Steadies as Long-Term Holders Reinforce Momentum
It’s worth noting that Shariah interpretations differ across regions and advisory bodies. Just because the SRB in Bahrain endorses XRP doesn’t guarantee automatic acceptance in Saudi Arabia, Malaysia, or other countries unless their local Shariah boards agree.
Still, while other cryptos and stablecoins have sought (or obtained) Shariah advisory opinions, very few have had a major national central bank-regulated Shariah bureau backing. This distinction could provide XRP with an important head start in attracting Islamic finance business.
Significance for crypto and XRP
Many Muslim-majority jurisdictions require Shariah certification for any financial product. With XRP now certified, Ripple has an easier path to partner with Islamic banks, fintechs, and remittance firms in the Gulf.
This approval helps overcome a major hurdle for banks and other institutions in regions where Islamic finance rules apply. It shows that XRP can be used for practical purposes like payments, which fit ethical guidelines, and isn’t just a speculative asset.
The XRP community is now hopeful that this certification could catalyze a resurgence of institutional and retail interest in XRP from the Middle East. Some predictions even indicate the price could rise considerably by the end of 2025 if market conditions are favorable.
Either way, while the approval is a huge step, the work isn’t over. For XRP to keep this status and the trust that comes with it, Ripple must continue to operate transparently, maintain good governance, undergo audits, and ensure its practices stay in line with Shariah rules.
Related: XRP Eyes $3.60 Breakout as ETF Inflows and RLUSD Adoption Build Case Against Bitcoin
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Source: https://coinedition.com/xrp-deemed-shariah-compliant-by-shariyah-review-bureau/
