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Virgil Griffith, head of special projects of the Ethereum foundation revealed in a press release that the non-profit foundation is collaborating with finance specialists in the Gulf Coast to demonstrate that the globally adopted blockchain is well-matched with Islamic regulation. Islamic finance practices submit to a number of beliefs, among which is the embargo placed on earning interest on loaned funds. This collaboration is perceived as the first stage on the road to obtaining investment from the region’s magnates.
Islamic Finance News
Griffith informed the public about activities put in place to verify ethereum’s Sharia compliance. He revealed that although there is a possibility that nothing happens, the foundation is looking towards a positive scenario, where the Saudi independent treasure fund invests, for instance, a trillion dollars in ethereum projects, which would be a huge advantage.
Following this partnership, Wan Hafizi Halim, an Islamic economics expert at Amanie Advisors in Dubai, revealed that his company distributed a report disclosing that ethereum smart contracts can be halal, or acquiescent with Islamic banking rules. Wan Hafizi announced that the study was carried out at the request of the Ethereum Foundation, which is headed by ethereum creator Vitalik Buterin.
Wan Hafizi revealed that What his firm did with ethereum was only to make available the guidelines. He added that businesses that wish to raise funds in Muslim countries can also make contact with Sharia scholars to evaluate their projects to confirm that they are acquiescent in their entirety. With the Sharia authorization they obtain, they would be given some clarities and be able to persuade Muslim stakeholders to participate and invest.
Saudi Sovereign Wealth Fund Size
Saudi Arabia’s Public Investment Fund (PIF), commanded by Crown Prince Mohammed bin Salman, supposedly oversees investments with a value $300 billion. Griffith referred to the certification struggle as a “moonshot” which would have a high advantage if it works and low downside if it fails. Yet it may not be implausible to imagine Gulf Coast royals investing in ethereum projects.
A crypto dealer in Saudi Arabia with knowledge of the local regulatory authorities, who asked to remain anonymous because trading is presently prohibited in the Kingdom, revealed to news reporters that Saudi chiefs are looking to using ethereum for national projects that will help the economy. He added that most blockchain development in the region happens on ethereum, also stating that people are still pretty cautious and only testing things out.
For now, ethereum’s for-profit sector – the ConsenSys venture studio run by ethereum co-founder Joseph Lubin – has been creating networks with Gulf Coast governments as well. According to a source with knowledge of the subject, the Saudi independent wealth fund, has been having talks with ConsenSys. Nonetheless, it is left to be seen if Saudi royals will invest directly in any Ethereum project. It is noteworthy that ConsenSys has standing projects in the region outside of Saudi Arabia. In Dubai, ConsenSys teamed up with local authorities on plans to support Sheikh Mohammed bin Rashid Al Maktoum with making Dubai the first city fully powered by blockchain by 2021.