Cryptocurrencies are becoming more popular and diverse every day. There are thousands of different types of digital coins, each with its own features and benefits. But there is one coin that stands out from the rest: Islamic Coin (ISLM).
Islamic Coin is the first cryptocurrency that is compliant with Sharia, the Islamic law. It aims to revolutionize the Islamic finance sector by providing a halal alternative to conventional money. In this article, we will explore what Islamic Coin is, how it works, what you can use it for, and what challenges it might face in the future.
What is Islamic Coin and how can you use it?
What is Sharia compliance?
Sharia compliance means following the rules and principles of Islamic law in financial transactions. Some of these rules are:
- – No interest or usury: Islamic finance prohibits charging or paying interest on loans or deposits. Instead, it promotes profit-sharing or risk-sharing arrangements.
- – No uncertainty or speculation: Islamic finance forbids engaging in transactions that involve excessive uncertainty or gambling-like activities. Contracts should be clear and transparent, and all parties should be aware of the possible outcomes.
- – No involvement in haram activities: Islamic finance does not allow investing in or benefiting from activities that are forbidden in Islam (such as alcohol, gambling, pork, and immoral businesses).
- – Social responsibility and environmental stewardship: Islamic finance encourages businesses to contribute to the welfare of society and the environment.
- – Asset-backed transactions: Islamic finance prefers transactions that are based on tangible assets rather than fiat money.
- – Prudence and moderation: Islamic finance discourages taking excessive risks or debts.
- – Charity and zakat: Islamic finance requires giving a portion of profits to charitable causes.
Sharia-compliant finance is an alternative financial system that operates within the boundaries of Islamic law. These are the same principles that Islamic Coin follows as a cryptocurrency.
How does Islamic Coin work?
Islamic Coin (ISLM) is a digital currency that was launched on September 1st, 2023. It was created by a team of computer engineers, Islamic scholars, bankers, and investors who wanted to offer a halal option for Muslims and non-Muslims alike. It uses blockchain technology to ensure security, transparency, and decentralization.
Islamic Coin has a total supply of 1.8 billion coins, which is equal to the number of Muslims in the world. The coin can be used for various purposes, such as:
– Sending and receiving money across borders without intermediaries or fees
– Buying and selling goods and services online or offline
– Investing in halal projects and businesses
– Donating to charitable causes
– Saving for the future
Islamic Coin can be bought and sold on various platforms, such as exchanges, wallets, apps, and websites. It can also be converted to other currencies or cryptocurrencies if needed.
What are the benefits of Islamic Coin?
Islamic Coin has several advantages over other cryptocurrencies and conventional money. Some of these are:
– It is compatible with the values and beliefs of Muslims around the world
– It is ethical and socially responsible
– It is transparent and accountable
– It is secure and decentralized
– It is fast and cost-effective
Islamic Coin aims to provide a solution for the challenges that Muslims face in the modern financial system, such as:
– Lack of access to banking services or financial inclusion
– High fees or interest rates for transactions or loans
– Exposure to haram or unethical activities or investments
– Vulnerability to fraud or corruption
By using Islamic Coin, Muslims can enjoy the benefits of digital money without compromising their faith or principles.
What are the challenges of Islamic Coin?
Islamic Coin is not without its challenges or limitations. Some of these are:
– It is still new and untested in the market
– It faces competition from other cryptocurrencies or financial products
– It depends on the acceptance and adoption of users and merchants
– It may encounter legal or regulatory hurdles in some countries or regions
– It may face technical issues or security breaches
Islamic Coin is aware of these challenges and is working hard to overcome them. It has obtained a fatwa (a religious ruling) from Sheikh Dr. Nizam Mohammed Saleh Yaquby, a renowned expert in Islamic finance. It has also partnered with several reputable organizations and institutions, such as:
– Haq Blockchain Company, which provides technical support and development for Islamic Coin
– Dubai Islamic Bank, which offers advisory services and banking solutions for Islamic Coin
– Abu Dhabi Investment Authority, which has invested in Islamic Coin
– Sheikh Maryam Suhail Obaid Suhail Al Maktoum, a member of the Dubai royal family and a board member of Islamic Coin
– Peter Rafti, a fund manager at Abu Dhabi Investment Authority and a board member of Islamic Coin
Islamic Coin hopes to become the preferred cryptocurrency for the 1.8 billion Muslims in the world, as well as anyone who values ethical and responsible finance. It is more than just a coin; it is a movement.
Charity and donations
One of the positive features of Islamic Coin is that every time it is minted, 10% of its value is reserved for charity and for the benefit of the Muslim community. If only 3 to 4% of Muslims who trade in crypto join the Islamic Coin network, it could become a coin like Bitcoin. If that happens, its value could reach 1 trillion dollars and 100 billion dollars could be used for charitable works for the Muslim community.
According to Farid, Muslims should adopt crypto and especially Islamic Coin. He said, “We should research cryptocurrencies so that we don’t fall behind the rest of the world. We Muslims should understand the crypto world and use it for our community’s benefit.”
Under Bitcoin’s shadow
The most popular cryptocurrency by market cap is Bitcoin. Bitcoin has been widely adopted and can be spent in the real world. So why would Muslims adopt Islamic Coin when they can use Bitcoin? One factor that could influence this is that several Muslim authorities have declared Bitcoin as “haram”. Being compliant with Sharia makes Islamic Coin different from other cryptos and gives it an edge.
However, not all Muslims agree with its principles and neither do all Muslim authorities agree with the fatwa. This could affect its acceptance in the future.
Islamic Coin could be a significant representation in the crypto space. A digital currency that conforms to Sharia and meets the practical needs of Muslims could be the next big crypto. But not all Muslims are on board with its principles and neither are all Muslim authorities with the fatwa. This could affect its acceptance in the future.
In a statement, Islamic Coin’s co-founder Mohammed Al-Kaf said, “We are proud to build and provide a Sharia-compliant, immutable, autonomous financial system that serves the Muslim community. This currency is a pillar of strength that is rooted in Islamic values and is also a testament to a bright future in a changing world.”
The project claims that it has connected 20 payments firms from the Middle East and North Africa (MENA) region to its network. Now the question is whether Islamic Coin will take over Bitcoin as the biggest crypto or whether it will live up to its expectations.