Founders of the Ethereum-compliant Haqq blockchain are launching a new cryptocurrency next month called Islamic Coin (ISLM), which is the first digital asset that follows the rules of the Quran. For it to be Sharia-compliant, applications that involve gambling, speculation, short-selling and debts and receivables sales have been excluded. The project was approved by religious leaders in June 2022 and it received a Fatwa, a religious green light, from authorities that liked Haqq’s proof-of-stake consensus method, decentralized nature, and commitment to charity.

A non-profit foundation called Evergreen DAO will receive 10% of each mined Islamic Coin to fund community projects. Furthermore, a Sharia board will decide which projects the foundation should invest in. The blockchain code will also allocate tokens to validators and delegators based on the number of staked coins and each token’s emission rate will be reduced by 5% every two years.

The official launch of Islamic Coin has been met with much enthusiasm and many people have taken to Twitter to ask how they can acquire the coin. On the other hand, there were several questions regarding whether the project was actually different or if it was simply attempting to attract Muslims.

The Islamic finance market has seen some meteoric rises in the last few years and is projected to reach a net worth of $3.7 trillion by 2024. The use of Sharia-compliant finance is the source of this growth as it does not produce income from interest, unlike traditional banks that make money from the difference in the interest rate paid to deposits and charged on loans. In Islamic banking, lenders and depositors share in profit and loss and transactions are conducted through unique sale and leasing contracts.

Haqq’s Islamic Coin could prove to be a revolutionary force in the cryptocurrency market and have the potential to make a huge impact in the Islamic finance world with its $3.7 trillion prediction. If the cryptocurrency is adopted by the Muslim population, it could potentially become an asset of Bitcoin-scale.



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