Sharia-Compliant Cryptocurrency: Islamic Coin – According to one of its co-founders, Islamic Coin will be the first cryptocurrency in the world to comply with Shariah next month.
But how does it become halal?
Islamic Coin runs on the Haqq Blockchain, a network that can support hundreds of apps globally while it is still in private sales mode.
Haqq, which in Arabic means “truth,” strictly adheres to Islamic financial customs and values. Its native cryptocurrency is the Islamic Coin.
Venture capitalists and financial organizations have been supporting the currency, which is still in private sales mode. Mohammed AlKaff AlHashmi, the co-founder of Islamic Coin, claims that this assistance will increase community confidence in the currency’s adoption before it is made available to the general public.
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AlHashmi did not give a specific date but stated that the coin will become public in May.
“Private sales mode was where we started for a reason. We don’t want people to believe that we are using the word “Islamic” to appeal to their emotions before asking them to invest in something they are unfamiliar with, he said in an interview with Arabian Business.
Because it was the first coin, AlHashmi explained, “We did some market research and found out that Bitcoin, for example, has become the most well-known and successful coin because they have the ‘first mover’ advantage.
“Ethereum was the first to introduce smart contracts if you look at them. Being the “first mover” in something that fulfills community needs is thus a recurrent theme in this situation. I got to the conclusion that if we want to accomplish something in the blockchain and cryptocurrency space that is effective and significant, we should be early adopters, and it should serve the community’s needs and create value.
Halal: A growing Crypto market
By 2024, the worldwide Islamic finance market is anticipated to reach a value of over $3.69 trillion, driven by a rise in demand for Sharia-compliant financing. The market for halal goods is anticipated to surpass $4 trillion.
AlHashmi stated, “It’s not only about food anymore; it’s also about healthcare and cosmetics items, as well as how to ensure that everything is truly Halal and adheres to community norms and values.
According to AlHashmi, the global Muslim population has increased to over 1.8 billion, representing a sizable untapped and “underserved” market in the cryptocurrency space. He also noted that Islamic banking is becoming more and more popular among non-Muslims around the world.
It’s interesting to note that non-Muslims accounted for at least 50% of private sales of Islamic coins.
Muslims or those who adhere to Sharia law are unable to do their tasks in a healthy ecology or environment.
I don’t want to imply that Bitcoin, Ethereum, or other coins are not halal by saying this. I can’t judge, but if you look at the blockchains that are currently on the market, it won’t make sense, for instance, if I put a Sharia-compliant project in a blockchain that also has a casino project, a gambling project, or another project that charges interest because these would all go against Sharia principles.
“A clean environment is always needed so that individuals may work on their ideas without worrying about whether they are Halal or not. Is this forbidden? Is this in line with Sharia law?
Eco-friendly and compatible with Ethereum, the Haqq blockchain makes it simple for anyone to establish their projects there and move them elsewhere or merge them.
Evergreen DAO Receives 10% of Islamic Coin
Evergreen DAO, a non-profit virtual foundation focused on long-term sustainability and community benefit, receives 10% of each Islamic coin produced in order to fund neighborhood projects. The co-founders of the coin do not, however, make funding decisions.
“We have no power to affect Evergreen. The community can vote for the projects to be supported through its own system, which will be introduced in Q3 of this year. The Sharia board will check to see if it complies with Sharia law after that.
Islamic currency has appointed a Sharia board, which AlHashmi claimed consists of the “top five” authorities in the area, to determine whether a project complies with Islamic standards. 40 banks are represented on the board, including Standard Chartered, Abu Dhabi Islamic Bank, and Dubai Islamic Bank.
“When we say this, people assume that we are trying to centralize it in some way, but that is untrue because everyone is welcome to place their project on our blockchain, which is what we are not doing. However, we have something that we call the Sharia Oracle,” he said.
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The Sharia-compliant cryptocurrency is also aimed at non-crypto users, so it will be comparatively more resilient to the impacts of the so-called “crypto winter,” when the market has a challenging period marked by company failures, significant fines, or sharp reductions in token prices.
“Remain tuned. The future of this project is quite bright.
Sharia-Compliant Cryptocurrency: Islamic Coin
Oklo Adiga
My name is Oklo Adiga and I am a blogger that loves writing. I am ambitious and driven, I thrive on challenges and constantly set goals for myself. Always feel free to reach out to me if you have any questions or if you just want to connect.