Cryptocurrencies and blockchain technologies play a huge role in the ongoing financial revolution in the world. One of the newest players to enter the digital scene is Islamic Coin ($ISLM), the native token of the HAQQ blockchain. Islamic Coin’s mission is to create a financial ecosystem that is equipped with built-in assistance and puts ethics first. What really sets Islamic Coin apart is that it is designed to empower Muslim communities around the world with halal financial instruments in the digital age.
Islamic Coin runs on the HAQQ blockchain, an Ethereum-compliant platform that only allows Sharia-compliant apps. The token in question received a fatwa setting out all these Islamic principles, including the ban on gambling, speculation, short selling, debt and credit sales.
This unique approach positions Islamic Coin not only as the first digital asset to comply with religious principles, but also as an asset that advocates philanthropy and rejects predatory financial practices. These aspects mean that Islamin Coin can be in demand from both Muslims and non-Muslims.
Changing the rules: pouring philanthropy into finance
Unlike traditional banking, which makes money by charging high interest rates to borrowers, Islamic banks make money by sharing profits and losses with depositors. This Sharia-compliant banking encourages payment by reclaiming a percentage of funds for contribution to ethical purposes.
The structure of Islamic Coin reflects this principle. With a limited total supply, 10% of each issue is automatically allocated to charitable causes. These funds are directed through the non-profit Evergreen DAO foundation, while the authorized Sharia Compliance Board decides which projects Evergreen will invest in and ensures that the funds are used in accordance with ethical and Islamic values.
On the way to adoption
The potential impact of Islamic Coin is quite significant. Suppose 3-4% of the Muslim population adopt the token. This means it has the potential to become a “Bitcoin-scale asset,” accelerating the growth of the Islamic finance market, which is projected to reach $3.7 trillion by 2024.
Islamic Coin has launched a grant and investment program after raising an unprecedented $200 million from private investors. The program has allocated 40 million USD, USDT and $ISLM to support development and marketing to increase global adoption. Every initiative is subject to review by the Sharia Compliance Board.
Build trust, drive change
HAQQ Blockchain and Islamic Coin introduce charitable obligations under the guidance of the Shariah Advisory Board and are breaking ground by introducing the world’s first digital currency to adopt Shariah provisions.
The Board, Sheikh Dr. It includes many influential members, including Hazza bin Sultan bin Zayed Al Nahyan and His Highness Sheikh Juma bin Maktoum Al Maktoum. The head of the advisory group is “scholar” Sheikh Dr., who stands between potential projects and the $2 trillion market for Islamic financial products. Nizam is Mohammed Saleh Yaquby. Yaquby is no stranger to Islamic finance and serves on the Sharia boards of other global financial institutions such as HSBC, Lloyds TSB, Barclays, BNP Paribas and Citigroup.
The founders actively lead Islamic Coin’s global sustainability efforts, advocate sustainable development goals and sustainable digital finance, and require Haqq Blockchain to implement an environmentally friendly proof-of-stake protocol in addition to the obligations outlined above.
A vision for ethical digital finance
Islamic Coin represents real optimism in the financial world. The initiative aims to align the digital economy with principles and ethics by providing a much-needed alternative to traditional financial systems. With its unique vision and approach, Islamic Coin has the potential to transform the lives of millions of people globally, and is a remarkable development in the world of finance.
The world is on the brink of a new financial revolution and Islamic Coin is preparing to be among the leaders of this change. Islamic Money is not just a cryptocurrency, but a cryptocurrency that has changed its methodology on an unprecedented scale and established it as a leading force shaping the future of digital global finance.
For more information about Islamic Coin, visit the official website here.
What is Islamic banking?
Islamic banking and finance is a system based on the principles of Sharia or Islamic law, which, among many other things, prohibits charging or paying interest on loans and emphasizing ethical and fair financial transactions.
One of the most striking features of Islamic banking is that it prohibits the application or payment of interest on loans that form the basis of conventional banking.
Instead, Islamic finance relies on profit and loss sharing agreements between lender and borrower. The lender shares the investment risk with the borrower, and both parties share the profit or loss.
Sharia law allows investing in intangibles such as stocks, bonds, and digital assets such as cryptocurrencies. Sharia-compliant assets do not need to be backed by physical goods as long as they have real uses. In addition, Sharia only allows investment in businesses and projects that do not harm society (thus gambling, alcohol or tobacco are prohibited).
Transparency is essential to Islamic finance and all financial transactions must be disclosed to all interested parties. Islamic finance is also overseen by Sharia boards made up of Islamic scholars who ensure that all financial transactions comply with Sharia principles.
Islamic finance offers a variety of products and services such as mudaraba, musharaka, murabaha, ijara and sukuk.
What is a Sharia-compliant cryptocurrency? What does it do?
To develop a compatible cryptocurrency, a team of Islamic finance and technology experts, including Islamic scholars, financial experts, and developers, come together to determine the design and characteristics of the cryptocurrency.
This team will ensure that the token is based on profit and loss sharing system rather than interest based lending. This means that investors share the profits and losses of the business venture rather than earning a fixed rate of return on their investment.
Once the coin is ready to be issued, a Sharia supervisory board must review and approve the coin before Muslim investors can start using it. This certification process includes a detailed review of the features and design of the cryptocurrency.
An example of a Shariah-compliant digital asset is the Islamic Coin (ISLM), built on the Haqq Network blockchain. In June 2022, Islamic Coin received a Fatwa (Islamic authority’s decision) within the scope of sharia compliance.
Islamic Coin, like many cryptocurrencies, follows a deflationary pattern and discourages the creation of new coins on a whim. Also, when a new ISLM is printed on the network, 10% of the proceeds are sent to Evergreen DAO, a decentralized autonomous organization that invests in Islamic charities or online projects. Contribution of funds to charities follows zakat, one of the pillars of Islam.
