‘Islamic Coin’s Legitimacy as a Sharia-Compliant Cryptocurrency Is Proven by Its Fatwa’ — Co-Founder

According to Mohammed AlKaff AlHashmi, the co-founder of “Islamic Coin,” Muslim scholars volition progressively presumption cryptocurrencies arsenic being “Shariah-compliant” if they relation arsenic a store of worth oregon are utilized arsenic a mean of exchange. Alhashmi added that Islam’s “robust” ethical model already “accommodates modern technological advancements specified arsenic the blockchain and cryptocurrencies.” This, helium said, whitethorn assistance explicate the gradual acceptance of unbacked integer assets by immoderate successful the Islamic community.

Crypto Acceptance successful the Muslim World

Despite this changed cognition towards cryptocurrencies, galore Islamic-themed integer tokens that were launched successful the past person seemingly failed to emulate the occurrence of pioneering coins similar bitcoin (BTC) oregon ethereum (ETH). In contrast, Alhashmi’s muslim coin appears to person garnered important fiscal enactment arsenic evidenced by the $200 cardinal successful backing precocious secured from ABO Digital.

When asked wherefore muslim coin has seemingly done better, AlHashmi pointed to however the project’s multifaceted attack broadens its “reach and enhances our worth proposition.” The co-founder besides argued that the coin’s evident occurrence connected the backing beforehand tin beryllium seen arsenic a testament to the Islamic community’s support of this approach.

However, critics of AlHashmi’s crypto task asseverate that the coin is not Sharia-compliant arsenic claimed. They besides impeach AlHashmi and his squad of attempting to lure devout Muslims with specified mendacious claims. In his response, AlHashmi told Bitcoin.com News that specified allegations “overlook the cardinal architecture and ethos of our project.” The co-founder besides went connected to place aspects of muslim coin which helium asserts backmost the Sharia-compliant claims.

Below are AlHashmi’s written answers to questions sent to him via Linkedin.

Bitcoin.com News (BCN): The muslim coin task appears to person had rather a palmy twelvemonth truthful far. From securing $200 cardinal from Alpha Blue Ocean’s ABO Digital to moving with Republic Crypto connected a token sale, it would look that you person fared amended wherever others person struggled to enactment afloat. Can you explicate to our readers wherefore the Islamic Coin task has been capable to garner the enactment it has today?

Mohammed AlKaff AlHashmi (MKH): The immense enactment down muslim coin tin beryllium attributed to the multifaceted attack that sets it isolated successful the crowded cryptocurrency landscape. First and foremost, our task is not constricted to catering to crypto-native individuals. While galore projects absorption solely connected this demographic, muslim coin aims to span the spread betwixt crypto-native and non-crypto audiences. This broadens our scope and enhances our worth proposition.

Also, we’re not conscionable creating a crypto product; we’re gathering a broad ecosystem that aligns with Shariah principles. This resonates with a planetary Muslim colonisation of astir 1.9 cardinal people. Our task is designed to beryllium much than conscionable a fiscal instrument. It aims to integrate seamlessly into assorted aspects of regular life, from societal media interactions to healthcare services.

Investors admit the tremendous imaginable of a task that not lone adheres to ethical guidelines but besides serves a large, untapped market. The enactment we’ve garnered is simply a testament to our innovative attack and the important interaction we’re poised to marque successful the integer plus space.

BCN: A fewer years ago, influential Islamic institutions and governments warned Muslims against buying oregon selling virtual money. Today, determination are respective alleged Islamic cryptos listed connected crypto exchanges and to some, this tin beryllium seen arsenic an endorsement of immoderate kind. Do you hold with this assessment?

MKH: The evolving stance connected cryptocurrencies wrong the Islamic assemblage is simply a analyzable issue. People thin to attack each caller exertion with caution, and that’s precisely what happened. As clip goes on, and knowing increases, truthful does the affirmative stance connected those technologies. That leads to accrued awareness, which leads to accrued adoption.
In Islamic fiscal jurisprudence, accepted currency is expected to beryllium backed by tangible assets similar golden oregon silver.

However, galore cryptocurrencies relation much arsenic integer concern assets alternatively than accepted currencies. These assets service arsenic a store of worth and a mean for transactions, and their worth fluctuates based connected assemblage adoption. When viewed done this lens, scholars are progressively recognizing that integer assets tin beryllium Shariah-compliant, provided they are not utilized for activities that contravene Islamic principles, specified arsenic usury oregon the commercialized of prohibited substances.

Islam’s ethical model is robust capable to accommodate modern technological advancements, including blockchain and cryptocurrencies. As consciousness grows, absorption often gives mode to acceptance, not conscionable wrong the Islamic scenery but besides successful broader societal contexts.

It’s besides worthy noting that today, much Islamic scholars and Islamic fiscal institutions are delving deeper into blockchain exertion and its capabilities — astute contracts, transparency, and assemblage governance — and they are uncovering that it aligns good with the principles of Islamic finance. This has led to a much favourable presumption of integer assets wrong the Islamic community, paving the mode for greater acceptance and adoption.

So, the displacement successful cognition is not truthful overmuch an endorsement arsenic it is an improvement of understanding, driven by accrued awareness, technological advancements, and the realization that integer assets tin coexist with Islamic principles.

BCN: What is your cognition of the regulatory situation successful the Middle East and North Africa (MENA) portion versus Europe, wherever you are headquartered?

MKH: The regulatory situation successful MENA and Europe are distinct, each shaped by its ain acceptable of socio-economic, cultural, and governmental aspects. Many presumption Europe arsenic the modular successful fiscal innovation, but it’s important to admit that they besides woody with challenges. The 2008 fiscal situation reminds america that a strategy built connected interest-based loans tin besides person economical downturns. High involvement rates and overpriced assets created a liquidity gap, which tin trigger a situation with planetary ramifications.

In contrast, the Islamic fiscal system, prevalent successful the MENA region, has demonstrated resilience done community-centric values. In 2015, Islamic fiscal entities successful Jordan recorded a -0.9% ostentation complaint portion the satellite grappled with ostentation rates exceeding 7.1%. This underscores the inherent stableness of an interest-free, balanced fiscal strategy that prioritizes assemblage well-being implicit profit.

However, portion the Islamic fiscal strategy has proven its efficacy, it has not been adequately served by modern technology. This is simply a spread we’re trying to span with Islamic coin, and we privation to animate much Shariah-oriented fintech ventures to look crossed the market.

BCN: Some assertion that muslim coin’s compliance with Islamic instrumentality cannot beryllium verified. What makes you accidental your task is Shariah-compliant and wherefore is this important for the integer currency?

MKH: Islamic coin’s legitimacy arsenic a Sharia-compliant cryptocurrency is proven by its Fatwa, a important Islamic ruling fixed to the task by renowned Islamic scholars and professionals successful Islamic banking. This Fatwa is not conscionable a stamp of approval; it’s a rigorous validation of our coin’s adherence to the principles of Shariah. Beyond this pivotal endorsement, muslim coin’s plan and operational model are profoundly rooted successful Islamic fiscal principles. It operates connected a profit-and-loss sharing system, aligning with the prohibition of interest-based lending successful Islamic finance.

Every transaction connected the HAQQ blockchain is transparently recorded connected a decentralized ledger, ensuring further compliance. Our committedness to these principles ensures that the token provides a genuinely Sharia-compliant avenue for the planetary Muslim assemblage to prosecute with integer assets, bridging modern concern with ethical fiscal practice.

BCN: Critics besides assertion that determination is thing Islamic astir your coin and that you are lone utilizing this to triumph implicit devout Muslims who would different not put oregon bargain the coins. What would beryllium your effect to this?

MKH: Such claims are not lone false, but they besides place the cardinal architecture and ethos of our project. Unlike accepted centralized systems, wherever transparency mightiness beryllium a concern, blockchain exertion allows for unparalleled scrutiny. Every facet of muslim coin, from its astute contracts to its fiscal transactions, is unfastened to nationalist verification. This transparency extends to our Sharia compliance arsenic well. Our scholars and issued Fatwa tin beryllium easy verified connected our website.

Moreover, we’ve gone a measurement further by implementing the Shariah Oracle, a mechanics designed to verify the decentralized applications (dapps) created connected the HAQQ chain. This ensures that applications align with Islamic principles, providing an further furniture of spot and compliance.

It’s important to retrieve that muslim coin is not conscionable an exclusive crypto product; it’s an inclusive fiscal instrumentality built connected a instauration of Islamic ethics. From nett and nonaccomplishment sharing to transparency and assemblage contributions, each diagnostic is designed to beryllium successful harmony with Islamic principles. A information of the coin’s proceeds is allocated to Islamic charities and projects, adhering to the rule of zakat, 1 of the halfway pillars of Islam.

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