Islamic Coin, the first cryptocurrency compliant with Sharia law, will be released to the public in May 2023, one of its co-founders told Arabian Business.
What renders it halal, though?
Islamic Coin, which is still in private sales mode, operates on the Haqq Blockchain, a global network interoperable with tens of thousands of applications.
Haqq, which means ‘truth’ in Arabic, strictly adheres to Islamic financial principles and traditions; its native cryptocurrency is the Islamic Coin.
Still in private sales, the currency is garnering support from venture capitalists and financial institutions. According to Mohammed AlKaff AlHashmi, co-founder of Islamic Coin, this support will develop community trust and confidence in the currency’s traction prior to its public release.
AlHashmi stated that the coin will be released to the general public in May, but did not provide a specific date.
“We began with private transactions for a purpose. We don’t want people to believe that we’re using the term ‘Islamic’ to play on their emotions in order to convince them to invest in something they don’t understand, he told Arabian Business.
AlHashmi stated, “We conducted market research and discovered that Bitcoin, for example, has become the most famous and successful coin due to the ‘first mover’ advantage, as it was the first coin.”
“Looking at Ethereum, they were the pioneers of smart contracts. Being a “first mover” in something that addresses community requirements is thus a common factor. I came to the conclusion that if we want to do something successful and meaningful in the blockchain and crypto world, we must be the first to market with something that addresses the requirements of the community and adds value.
Halal: A growing market
The global Islamic finance market is anticipated to surpass $3.69 trillion by 2024, fueled by an increasing interest in Sharia-compliant finance. The Halal products market is anticipated to surpass $4 trillion.
“It’s no longer just about food; it’s also about healthcare products and cosmetics, and ensuring that everything is truly Halal and consistent with community ethics and values,” said AlHashmi.
The global Muslim community has grown to more than 1.8 billion people, which represents an enormous untapped and “underserved” market in the crypto world, according to AlHashmi, who added that non-Muslims around the world are adopting Islamic finance.
Intriguingly, at least fifty percent of Islamic Coin’s private transactions were to non-Muslims.
“There is no clean ecosystem or environment in which Muslims or those who adhere to Sharia law can conduct their projects.”
This does not imply that Bitcoin, Ethereum, or other cryptocurrencies are not halal. I cannot pass judgment, but if you examine the available blockchains on the market, it makes no sense, for instance, to put a Sharia-compliant project in a blockchain that also contains a casino project, a gambling project, or another project that charges interest – all of which would violate Sharia principles.”
“There is always a need for a clean environment where people can place their initiatives without questioning whether they are halal or not. Is this unlawful? Is this compliant with Sharia?”
The Haqq blockchain:
The Haqq blockchain is eco-friendly and compatible with Ethereum, making it simple for those who create their projects on it to migrate or integrate them with other blockchains.
Crypto venture strategies Sharia-compliant use of digital assets for Islamic world expansion
Evergreen DAO, a non-profit virtual foundation focused on long-term sustainability and community impact, receives ten percent of every Islamic Coin minted to fund community initiatives. Nonetheless, the coin’s co-founders do not choose which initiatives to fund.
“We wield no influence over Evergreen. It will have its own system, which will be introduced in the third quarter of this year, and the community will be able to vote on which initiatives to fund. Then it will be reviewed by the Sharia commission to ensure Sharia compliance.”
Islamic coin has appointed a Sharia board to determine whether a project complies with Islamic principles. According to AlHashmi, the Sharia board is comprised of the region’s “top five” specialists. Among the forty institutions on the board are Standard Chartered, Abu Dhabi Islamic Bank, and Dubai Islamic Bank.
“When we say this, people assume we are attempting to inadvertently centralize it, but that is not the case, as anyone is invited to host their project on our blockchain. “However, we have developed a tool known as the Sharia Oracle,” he explained.
“Once your initiative is on our blockchain, it is decentralized, and we cannot say no to anyone so long as it complies with Sharia law. You would be required to consult the Sharia Oracle.
First, the community would vote on it, and then it would be brought before a Sharia court.
You will then receive a badge or sign indicating that you have been vetted and are Sharia-compliant.”—Arabian Business
