The emergence of cryptocurrency has created waves in the financial industry, offering a decentralized and potentially disruptive alternative to traditional banking systems. However, the volatile nature of digital currencies and the lack of regulation have led to a number of ethical and religious questions. Islamic finance, in particular, is governed by a unique set of rules known as Sharia law. In response to these challenges, Islamic Coin has emerged as the world’s first Sharia-compliant cryptocurrency.
What is Islamic Coin?
Islamic Coin is the first Sharia-compliant cryptocurrency and is the native currency of the HAQQ ecosystem. The HAQQ ecosystem is a community-run network designed to empower an ethics-first, Sharia-compliant financial ecosystem. The word “Haqq” in Arabic signifies ‘truth,’ and the system is specifically designed to adhere strictly to Islamic principles and traditions regarding finance. Islamic Coin aims to offer the worldwide Muslim population a financial platform that presents a 100% halal cryptocurrency.
The coin operates on the Haqq blockchain, which is compatible with the Ethereum network and thousands of applications worldwide. The mission of Haqq is to provide the global Muslim population with a financial platform enabling real-time, transparent, and cross-border transactions while also supporting Web3 innovations and philanthropy. To support its philanthropic goals, the network dedicates 10% of each Islamic Coin issuance to Evergreen DAO, a non-profit virtual foundation focused on long-term sustainability and community impact, to fund community projects in the Muslim world.
The Haqq Association, the ecosystem’s non-profit arm, has partnered with the International Islamic University of Malaysia (IIUM) to increase blockchain and crypto awareness. Additionally, it has formed commercial partnerships with retail and e-commerce platforms to introduce Sharia-compliant Web3 technologies into traditional Web2 environments. For instance, Holiday Swap, the world’s largest home exchange platform, has partnered to transition the company’s tokenized operations to Web3.
Compliance with Islamic principles
To ensure compliance with Islamic principles, Islamic Coin has appointed a Sharia board that includes 40 banks, among them Standard Chartered, Abu Dhabi Islamic Bank, and Dubai Islamic Bank. Projects that wish to launch on the Haqq blockchain must comply with Islamic principles to receive a badge indicating their compliance and eliciting a higher level of trust within the community. However, projects that are not Sharia-compliant can still launch on the network but won’t receive this badge.
To meet the growing demand for Sharia-compliant financial technology, the Haqq Association has signed a Memorandum of Understanding with the London-based DDCAP Group™. This partnership aims to explore potential collaboration opportunities to build industry-grade systems. As part of these collaborations, there is a consideration for a Web3 alternative to the SWIFT payments system.
Global Islamic finance market
Experts expect the global Islamic finance market to surpass $3.69 trillion by 2024, while they project the Halal products market to surpass $4 trillion. The Islamic Coin has the potential to become a tier-one asset if 3-4% of the online Muslim community holds the coin. This possibility is based on the untapped and underserved market the Muslim community represents, which includes more than 1.8 billion people globally. In 2022, cryptocurrency transactions in the MENA region accounted for $566 billion in value, a 48% increase from the previous year. Interestingly, non-Muslims have also shown interest in Islamic finance, as evidenced by the fact that at least 50 percent of non-Muslims purchased Islamic Coins during Haqq’s private sales.
Islamic Coin gains over 1.3 million users
The Islamic Coin operates on the Haqq network, which runs on a decentralized ledger system (or blockchain) that adheres to Sharia law, the moral and religious law forming part of the Islamic tradition. This makes it a “halal” (permissible in Islamic law) form of investment. The Haqq network was founded in 2022 and has quickly gained popularity, with over 1.3 million users in less than six months.
Who invented the Islamic Coin?
ICNetwork Ltd is a technology company funded privately and established by a cohort of experienced fintech and blockchain entrepreneurs. Their key interest lies in the development of virtuous financial services and probing the capabilities of distributed technologies within the realm of ethical finance. A significant early participant and the initiator of IC Tech is Andrey Kuznetsov, who is a forward-thinking, serial tech entrepreneur and a strong advocate of cryptocurrency.
ICNetwork Ltd crafts the HAQQ Blockchain, a decentralized pioneering ledger that complies with Shariah. They specifically construct it to adhere to the principles and customs of Islamic finance.
When will the team launch Islamic Coin?
Slated for public release in 2023, the Haqq ecosystem is preparing to launch its indigenous cryptocurrency, $ISLM. Haqq holds the unique distinction of anchoring the first ecosystem globally in Islamic principles and customs. It aspires to deliver a custom-built financial platform to cater to the international Muslim community.
Features of Islamic Coin
- The team behind Islamic Coin ensures that it cannot be arbitrarily printed and devalued. They also prevent arbitrary deflation through the rise of interest rates. The market determines its price, making it always fair.
- The HAQQ network automatically mints Islamic Coin at the predetermined announced rate, distributing it among validators and delegators who actively contribute and invest in the network’s functioning and security.
- Conventional banks, whose main business is to earn money by charging interest, do not operate Islamic Coin. Charging interest is what leads to riba and is therefore haram.”
- Each time a new Islamic Coin is minted, the team deposits 10% into a special Evergreen DAO for further investment in Islam-related ventures or donation to Muslim charities.. This is the first introduction of a coin bringing direct economic value to the Muslim community.”
Islamic Coin and Shariah Oracle to bring ethical compliance to Crypto
Islamic Coin, the first Sharia-compliant cryptocurrency, is gaining significant support from influential figures within the Muslim community. It aims to blend Islamic finance ethics with the rapidly advancing field of digital currencies. The project recently received backing from notable figures like Rear Admiral Pilot Sheikh Saeed bin Hamdan bin Mohammed al-Nahyan, a respected UAE military figure, and several other prominent personalities from the region. This support suggests a significant endorsement of the project.
Central to the integrity of the project is the Shariah Oracle, an innovative mechanism integrated with the Haqq Wallet, designed to ensure ethical compliance within blockchain networks. It acts as an online registry for Halal Certificates, letting smart contract developers and businesses verify their ethical relevance for Muslim users. The mechanism’s unique feature is its decentralized operation, which allows the community and the Shariah board to collaboratively review and approve smart contract proposals.
Islamic Coin’s burgeoning user base, coupled with the endorsement of key figures from the Muslim world and its innovative approach, positions it as a pivotal player in the emerging field of Sharia-compliant virtual currency. The project signifies a promising new chapter in the narrative of technology serving society, particularly the Muslim community, by aligning financial innovations with Islamic ethics.
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