The Islamic Coin, which is currently in private sales mode, uses the Haqq Blockchain, designed to comply strictly with Islamic principles and traditions regarding finance
The world’s first Sharia-compliant cryptocurrency – the Islamic Coin – is set to be launched in May, according to one of its co-founders, Mohammed AlKaff AlHashmi.
The Islamic Coin, which is currently in private sales mode, uses the Haqq Blockchain, designed to comply strictly with Islamic principles and traditions regarding finance. The blockchain would be eco-friendly and compatible with thousands of other applications worldwide.
As its name suggests, the currency would aim to gain more support from venture capitalist funders and build confidence before its public release.
“We started with private sales mode for a reason. We don’t want people to think that we are using the word ‘Islamic’ to play on their emotions and then moving on to become an investment in something they don’t know,” AlHashmi told Arabian Business.
He explained that his team conducted market research and concluded that coins like BitCoin and Ethereum were successful because they addressed the community’s needs while being the first movers.
He concluded that his project “should bring something that [makes it] the first mover and … address the needs of and add value to the community.”
The entire Islamic finance market is projected to reach over $3.69 trillion by 2024, and the Halal products market is expected to reach over $4 trillion.
AlHashmi noted that the cryptocurrency will be targeting the global Muslim community, which represents over 1.8 billion people, a market that is currently underserved in the crypto world.
However, at least 50 percent of private sales made in Islamic Coin still came from non-Muslims.
The Haqq blockchain is designed to be eco-friendly and Ethereum-compatible. It is easy for people to migrate their projects or integrate them into other platforms.
The blockchain is designed to be clean and compliant with Sharia principles, so people can put their projects on the platform without doubt or fear of non-compliance with Islamic principles.
“I cannot judge, but if you look at the available blockchains in the market, it will not make sense that for example, I put a Sharia-compliant project in a blockchain that at the same time has a casino project, a gambling project, or another project that charges interest,” AlHashmi said.
Part of the decision-making for Sharia compliance as well as project inclusion rests on “top five” experts in the region and 40 banks, including Standard Chartered, Abu Dhabi Islamic Bank, and Dubai Islamic Bank, among others.
AlHashmi said that the board was not designed to centralise the platform. Once a project is screened and Sharia compliant, it receives a badge or sign that guarantees trust with the community.
The Sharia-compliant cryptocurrency aims to target non-crypto native people and be more resistant to the effects of the crypto winter, where the market experiences a tough period of company collapses, major fines, or massive drops in token prices.
Plenty of Recognition
In June 2022, the currency gained a Fatwa issued by the world’s leading Muslim authorities. Later in August, Islamic Coin raised $200m during a private sale.
In November 2022, Islamic Coin won the Most Promising ESG Crypto at the Middle East Blockchain Awards. The project has gotten support from the UAE royal family, including His Excellency Sheikh Khalifa Bin Mohammed bin Khalid AL Nahyan.
In February 2023, the coin was awarded the golden excellence award for Shariah compliance by the UAE Minister of Tolerance.