The Sharia Supervisory Authority of the Central Bank of Bahrain has issued a Sharia opinion stating that the cryptocurrency $XRP , belonging to the company #Ripple , is compliant with the principles of Islamic law.

The authority based its ruling on several technical and practical foundations for the XRP currency and its ledger (#XRPLedger ). The main point of the Sharia opinion is that the XRP ledger is an open-source blockchain designed by Ripple to facilitate global payments between banks. Being a decentralized network, it efficiently and transparently manages the operations of currency #XRP .

The authority indicated that the primary aim of the XRP currency is to act as a bridge to facilitate transactions between various fiat currencies, giving it a usage that complies with Islamic law and making it halal.

The report clarified that the XRP currency is not limited to being a tool for facilitating payments but is also used to provide on-demand liquidity (On-Demand Liquidity - ODL) for service #RippleNet , which is a global payment network for financial institutions.

Source: Memo from the Sharia Supervisory Authority of the Central Bank of Bahrain