First Sharia-Compliant cryptocurrency using Haqq blockchain to be introduced next month

shutterstock 1013061979 Large

The world is set to witness the launch of the first Sharia-compliant cryptocurrency, the Islamic Coin, in May. Co-founded by Mohammed AlKaff AlHashmi, the project uses the Haqq Blockchain, an eco-friendly and versatile platform designed to adhere to Islamic principles and traditions in finance. With the global Islamic finance market projected to surpass $3.69 trillion by 2024 and the Halal products market expected to exceed $4 trillion, the Islamic Coin aims to address the underserved crypto needs of the 1.8 billion-strong Muslim community worldwide.

The Islamic Coin is currently in private sales mode, a decision made by its founders to demonstrate their commitment to providing a genuinely Islamic solution to the world of cryptocurrency. They hope that by first gaining support from venture capitalists, the project will build confidence before being released to the public. AlHashmi and his team have carefully studied the success of cryptocurrencies like Bitcoin and Ethereum, which he attributes to being first movers and addressing community needs.

The Haqq Blockchain, designed to be eco-friendly and Ethereum-compatible, allows for seamless migration and integration of projects across platforms. The platform is clean and adheres to Sharia principles, giving users the confidence to develop projects without concerns of non-compliance. AlHashmi highlights that the Haqq Blockchain provides a more suitable environment for Sharia-compliant projects compared to other blockchains that may host casinos or gambling projects.

A panel of experts from the region’s top five financial institutions and 40 banks, including Standard Chartered, Abu Dhabi Islamic Bank, and Dubai Islamic Bank, is responsible for determining Sharia compliance and project inclusion. AlHashmi emphasises that the board is not intended to centralise the platform, but rather to screen projects and award a badge of trust to those deemed Sharia-compliant.

Islamic Coin aspires to cater to non-crypto native users and demonstrate resilience during crypto winters, which often see company collapses, major fines, or significant drops in token prices. The project has already gained recognition, receiving a Fatwa from leading Muslim authorities in June 2022 and raising $200m during a private sale in August. In November 2022, Islamic Coin was awarded the Most Promising ESG Crypto at the Middle East Blockchain Awards and has received support from the UAE royal family. In February 2023, the UAE Minister of Tolerance awarded the coin the golden excellence award for Shariah compliance.

The Islamic Coin and Haqq Blockchain project represents a pioneering step in the world of cryptocurrencies, aiming to provide a Sharia-compliant solution to a vast and underserved market. With endorsements from influential figures and institutions, as well as growing confidence from private sales, the Islamic Coin is poised to make a significant impact in the world of digital finance.

More from Qonversations

Global Affairs

2024 04 12T140736Z 1 LYNXNPEK3B0KX RTROPTP 4 NIGERIA INFLATION

Nearly 55 million face hunger in West and Central Africa

Global Affairs

2024 04 11T160209Z 1093576212 RC2F47A84CXD RTRMADP 3 IMF WORLDBANK USA

IMF confirms Kristalina Georgieva for second term

Global Affairs

2024 04 02T195413Z 1300110265 RC2OX6ANJGPZ RTRMADP 3 HAITI VIOLENCE

Haiti finalizes deal to form transitional council

Global Affairs

Vote

Why Estonia wants to classify the Estonian Orthodox Church as a terrorist organization

Front of mind