Bahrain certifies XRP as Shariah compliant, paves the way for Islamic markets

The Shariyah (Shariyah Review Bureau – SRB) of the Central Bank of Bahrain has officially confirmed that XRP meets Shariah compliance standards. This is an important step, giving this cryptocurrency the opportunity to access the Islamic financial market worth about $2 trillion.

According to the report, this certification allows XRP to be used in financial transactions without violating religious principles that prohibit interest (riba), excessive uncertainty (gharar), or speculative behavior. As a result, XRP can be integrated into banking services, investment funds, and remittance activities in countries that apply Islamic law.

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The major difference of XRP lies in the certification coming from a central bank-managed authority – something that many other cryptocurrencies have not achieved. This could give Ripple an advantage in building partnerships with Islamic banks, fintech companies, and cross-border payment service providers.

However, certification in Bahrain does not mean that XRP will automatically be accepted in other countries such as Saudi Arabia or the UAE. The Shariah councils in each country still need to conduct their own assessments before integrating XRP into the financial system.

Nonetheless, the XRP community believes that this move will stimulate interest from institutions and retail investors in the Middle East, contributing to price growth momentum. Ripple still needs to maintain standards of transparency, governance, and business ethics to ensure that XRP continues to align with Shariah principles.

What is Shariah law in finance?

Shariah law is the system of rules of Islam, applicable both in social life and finance. In the field of currency and investment, Shariah sets out fundamental principles:

• Prohibition of interest (riba): No lending for interest.
• Prohibit excessive uncertainty (gharar): Transactions must be transparent, not ambiguous or overly risky.
• Prohibition of speculation and gambling (maysir): Betting activities are considered violations.
• Encouraging real assets: Investments should be tied to goods, services, or real value.

So, when XRP is certified "Shariah-compliant," it means that the coin can be used in Islamic financial activities without violating the above principles, helping Ripple expand opportunities in Islamic countries.