‘Islamic Coin,’ the world’s first ‘Sharia compliant’ cryptocurrency from the world’s second largest religion, Islam.
Although seemingly incomparable on first inspection, the worlds of crypto and religion both host several fundamental similarities when it comes to the devotion and belief in which their followers have/practice.
As of today, crypto’s ties with religion have largely come through the Bitcoin movement, and how many of the coin’s evangelists have an almost dogmatised outlook on how it can shape a more-prosperous financial future for human beings.
Of course, such instance can also be said for many religious followers and their perspective on their respective religion.
However, as the crypto realm continues to expand- perhaps on an exponential scale in comparison to the adoption of religion across the globe- it was only a matter of time until the two worlds explicitly crossed.
The Islamic Coin
The Islamic Coin- which is to be launched on an unspecified date in May – will be the native coin of eco-friendly blockchain ‘Haqq’– which in Arabic means ‘truth’. Here, the Haqq blockchain has been built to strictly abide by the religion’s principal traditions when it comes to finance.
As previously stated, the coin and blockchain’s fundamental premise is to be ‘Sharia compliant,’ which, for those not in the know, relates to complying to the legal set of rules and practices in which govern Islam.
Becoming Sharia Compliant
To accrue its Sharia compliant status, the coin was put forward to an expert board of over 40 Islamic finance institutions, including Standard Chartered, Abu Dhabi Islamic Bank, Dubai Islamic Bank, and more.
Further, projects wishing to launch with Islamic Coin and the Haqq blockchain must first pass what the project’s Co-Founder Mohammed AlKaff AlHashmi calls the ‘Sharia Oracle,’ which involves passing a community vote and a Sharia Court decision.
Upon a successful screening, projects will then be given a badge or sign to signal their Sharia compliance. Here, unsuccessful projects can still run on Haqq, but without the badge/sign which guarantees trust from the Muslim community.
The fundamental principles of Sharia-compliant finance involve the omission of elements such as interest and gambling- i.e. two elements that are seen across many crypto projects. The coin also has a firm focus on charity, as 10% of each minted token will go to the Evergreen DAO- a non-profit project that’s focused on long term sustainability and community improvement.
That being said, AlHashmi doesn’t necessarily deem every other crypto project ‘haram’ (i.e. forbidden by Islamic law), and that instead, Islamic Coin simply serves as a certified Sharia compliant project in which Muslims can have complete trust in.
In outlining the coin’s inspiration and potential future successes, AlHashmi points out the ‘first mover’ proficiencies of the world’s two largest cryptocurrencies- Bitcoin and Ethereum:
“We did some market research and found out that Bitcoin, for example, has become the most famous and successful coin because they have the ‘first mover’ advantage, and it was the first coin. When you look at Ethereum, they were the first to start smart contracts. So there is a common factor here: being a ‘first mover’ in something that addresses community needs… I came to the conclusion that if we want to do something successful and meaningful in the blockchain and crypto world, then we should bring something that we are the first movers in and then it should address the needs of and add value to the community.”
Mohammed AlKaff AlHashmi
The Islamic Coin Launch
As previously stated, the coin launches on an unspecified date in May.
Prior to this, the coin has been in ‘private sales mode,’ with AlHashmi stating that it’s already garnered support from various (unnamed) financial institutions and venture capital firms. Such support is said to help establish trust in the coin, create traction before its public release, and discourage any purely emotional investments which may come through the coin’s close connection with Islam.
Impact
Going back to the coin’s Halal status, Islamic Coin enters a market- the global Islamic finance market that is- that’s tipped to be worth around $3.7 trillion by next year. It also comes as part of a growing Halal products market- which now, has branched out its traditional food-centric focus to include cosmetics, healthcare, and any other area of consumerist society that can be revamped and tailored towards the fundamental values of Islam.
Although primarily marketed for the word’s 1.8 billion Muslim population, the coin is also being embraced by non-Muslims, with at least 50% of the coin’s private sales being made by such type of parties.
In addition, the project has been developed in a way that makes it compatible with Ethereum, meaning the blockchain’s 3.9 million active crypto wallets (per Bankless Times) can migrate or integrate their assets to the Haqq blockchain with ease.
