With the introduction of the Islamic Coin ($ISLM), the native coin of the Haqq ecosystem, the worldwide Muslim people will receive their first cryptocurrency ecosystem that adheres to the beliefs and practices of Islam as blockchain technology slowly gains popularity throughout the world.
With Islamic banks and financial institutions operating in many nations, Islamic banking has gained prominence on a global scale. Devout Muslims have historically had fewer options due to the lack of services that adhere to Shariah. Due to this, interest in financial products with strong ethical potential, such as those based on blockchain technology and cryptocurrencies, has increased.
With the launch of the first cryptocurrency compliant with Shariah based on the Haqq Blockchain, halal financial platforms and cryptocurrencies are growing. The cryptocurrency, known as Islamic Coin ($ISLM), aims to offer a financially responsible substitute with built-in altruistic components. But what distinguishes the coin is its dedication to enabling the Muslim community globally through a halal financial tool created for the digital era.
Cryptocurrencies And Blockchain: A Key To Shariah Compliance?
The position of Islamic experts and the publication of fatwas, or religious decisions, regarding cryptocurrencies have a considerable impact on how the Muslim community adopts and views them. Respected religious leaders who serve on Shariah councils have an impact on public policy, offer direction to devout Muslims, and have an effect on how Muslims see and participate in the cryptocurrency market by aligning their views with Islamic values.
However, more than just personal investments could be impacted by the Islamic world’s adoption of cryptocurrencies. Large sovereign wealth exists in countries with a majority of Muslims; although these funds are not limited to Shariah-compliant assets, some of their investments do so. Their presence in the cryptocurrency market could have a significant impact on market dynamics and the development of the technology.
Certain parts of cryptocurrencies may be compliant with Shariah law. From a Shariah-compliant standpoint, the absence of interest or riba, the potential for enhanced efficiency, and decreased friction in terms of expenses are all desirable qualities. These features might appeal to both non-Muslims interested in unconventional financial strategies and Muslims looking for Islamic-compliant financial solutions.
$ISLM: Upholding Ethical Principles
A new coin aimed towards the Islamic world has to be open and provide clear information about its underlying assets, ownership rights, and transaction processes in order to remain compliant with the Islamic financial ecosystem. The Islamic Coin team benefited from the backing of a dedicated Shariah board, which provided direction on how to develop the coin.
Islamic Coin’s pricing is fair because the market alone determines its value. Islamic Coin functions independently of profit-driven institutions that depend on interest fees, in contrast to conventional fiat currencies. A generous 10% of each new issue of Islamic Coins is donated to the Evergreen DAO non-profit virtual foundation. This budgetary allocation supports Islamic internet projects while also providing donations to Islamic organizations.
The Haqq Association’s CTO, Andrey Kuznetsov, argues that Islamic Coin extends beyond charitable giving. It also places a high priority on minimizing the carbon footprint of cryptocurrency-related businesses. The Islamic Coin network has a proof-of-stake architecture, so joining the network necessitates purchasing tokens. This method differs from other consensus procedures in that it uses less energy.
The Link Between Cryptocurrencies and Conventional Finance
Mohammed Alkaff Alhashmi, a co-founder of Haqq, thinks that the coin would be able to rival Bitcoin in terms of success if only 3-4% of the world’s Muslims own it. An outstanding $200 million has already been drawn to this ambitious goal, which is particularly noteworthy given the difficult market circumstances of the previous year.
The creator of HAQQ Blockchain, ICNetwork Ltd., has unveiled the first decentralized ledger that is deliberately created to follow the laws and customs of Islamic finance. It is a technical company with private funding that was founded by a team of seasoned blockchain and fintech business owners devoted to building ethical financial services.
Islamic Coin, Haqq Foundation, and ICNetwork are collaborating on a shared vision and ethics-first goal, positioning the new token to become the main form of payment for more than 2 billion Muslims globally. The concept of ethics is probably appealing to those outside of Islamic finance as well, indicating that the token will at least generate a significant level of interest after it is released.
Whatever this unique cryptocurrency’s future contains, it will undoubtedly make a stir in both Islamic and digital banking.