On July 3, according to foreign media report, the Ethereum Foundation is working with financial experts in the Gulf of Mexico to show how the world's second largest blockchain is compatible with Islamic law. If passed, this means the region. The chaebol will likely participate in the blockchain investment.
It is reported that Islamic financial practices are attached to certain beliefs, including prohibiting interest from loans.
Virgil Griffith, special project leader of the foundation, told reporters:
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“My job is to constantly try to prove the compliance of Ethereum in Islamic law. Of course, nothing will happen, but there is a hypothetical case. For example, Saudi sovereign wealth fund investment (Ethereum project) trillions The dollar, which will bring real benefits, that would be great."
Dan Hafizi Halim, an Islamic finance expert at Dubai-based Amanie Advisors, told CoinDesk that his company issued a document stating that Ethereum smart contracts could be “halal” or in line with Islamic banking rules. Wan Hafizi said the study was conducted at the request of the Ethereum Foundation.
“What we do for Ethereum is just to provide guidelines,” Wan Hafizi told CoinDesk. “Any company wishing to raise funds in a Muslim country can contact Islamic law scholars to evaluate their projects and see if they comply with local rules. Once they are certified by Shariah, they can persuade Muslim investors to participate in project investment."
According to reports, the Saudi Arabian Public Investment Fund (PIF), led by the controversial Crown Prince Mohammed Bin Salman, manages $300 billion in investments. Therefore, Griffith called the certification work a “moon landing plan”. If it succeeds, Ethereum will have a lot of room for growth, and if it fails, there will not be much room for decline.
A Saudi cryptocurrency trader who understands local regulators told CoinDesk that Saudi leaders are interested in using Ethereum to "create a national project to help the local economy," but it requires anonymity because the country currently bans cryptocurrency transactions.
“Most of the blockchain development here takes place in Ethereum,” he said. “People are still very cautious and are just testing.”
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ConsenSys's relationship with Saudi sovereign wealth fund PIF
At the same time, Ethereum's for-profit organization, Consensys Venture Studio, led by Ethereum co-founder Joseph Lubin, established contacts with the Gulf Coast government.
According to people familiar with the matter, the Saudi sovereign wealth fund PIF has been in constant contact with Consensys. However, whether the Saudi royal family will directly invest in any Ethereum project is still to be observed.
In Dubai, Consensys worked with the authorities to help Dubai's chieftains make Dubai the first city to be completely blockchain-driven by 2021. In addition, Consensys has also entered into a partnership with the United Arab Emirates Integrated Telecommunications Company.
As of now, ConsenSys has not responded to requests for comment.
Atit Yaqub, the liaison to the Ethereum Foundation, told reporters that ConsenSys did not participate in his current collaboration with Amanie Advisors (developing a financial product and service platform for Shariah).
“If they (Muslim leaders) want to get in touch with ConsenSys or anyone… or someone has developed a (compliant) ecosystem, they are more likely to participate.”