The Maldives Monetary Authority (MMA) has announced plans to research the feasibility of establishing an Islamic Digital Asset Centre in the Maldives. This initiative is driven by the increasing global interest in digital assets and the burgeoning field of Islamic finance, according to MMA.
The central bank underscored the growing interest in digital assets and Islamic finance across various countries as a key impetus for this decision. The MMA highlighted the critical importance of developing this sector to strategically position the Maldives as a regional hub for Islamic finance.
The proposed Islamic Digital Asset Centre will be designed to offer solutions grounded in Islamic Shariah principles, thereby enhancing financial inclusivity within the sector. This initiative is also aimed at attracting international investors to the Maldives' financial sector, both regionally and operationally, said MMA.
According to the central bank, a pivotal objective of the centre is to promote the advancement of Islamic Fintech. As efforts to establish the centre progress, there is a notable increase in global interest in Shariah-compliant digital assets, such as cryptocurrencies, halal non-fungible tokens (NFTs), Waqf tokens, and digital Sukuk, according to the central bank.
These digital assets have been gaining significant traction in global markets, with numerous countries already utilising them. To further support this initiative, MMA is currently seeking an agency to conduct a feasibility study for establishing the centre. Interested parties may obtain information from the MMA until 24 December and are required to submit their proposals by 11 a.m. on 29 December, the MMA stated.
In October, the central bank disclosed its plans to introduce digital currency in the Maldives, underscoring the development of asset-backed or Maldivian Rufiyaa-backed online currency. The central bank is working in collaboration with the Capital Market Development Authority (CMDA) to draft the requisite regulatory framework for this digital currency.
These initiatives are in harmony with the government's vision of transforming the Maldives into a regional financial hub. President Dr Mohamed Muizzu has stated an ambitious objective to elevate the contribution of digital assets to the country's GDP by 15% by the year 2030.