Quick Notes: Islamic Coin: The Shariah-Compliant Cryptocurrency for the Muslim Community
A 2-minute deep dive into Islamic finance's crypto influence
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In just two minutes, dive into the influence of Islamic finance, along with the emergence of Islamic Coin, a Shariah-compliant cryptocurrency situated at the crossroads of technology, religion, and finance, underscoring the potential for Islamic finance to intersect with blockchain and cryptocurrencies.
This Quick Notes Edition Includes:
An overview of Islamic finance’s increased role in the traditional global financial market
A brief analysis of Islamic Coin and Sharia’s influence on crypto
Growth and Impact of Islamic Finance
Islamic finance is experiencing rapid growth as Muslim nations become more developed, with over 500 banks and 1700 mutual funds implementing Shariah-compliant finance practices. The size and impact of Islamic finance are substantial. Islamic financial assets grew from $1.7 trillion to $2.8 trillion between 2012 and 2019, and projections indicate further growth to nearly $3.7 trillion by 2024. The growing populations of predominantly Muslim countries contribute to the expansion of Islamic financial assets potentially escalating beyond current projections.
Islamic finance prohibits charging interest (riba) and instead focuses on risk-sharing and profit-sharing between lenders and borrowers, aligning with Islamic law (Shariah).
The impact of Islamic finance is already evident, with significant growth in financial assets and projections for continued expansion driven by the increasing development of Muslim nations.
The intersection of technology, finance, and religion is further enhanced by the younger demographics in predominantly Muslim countries, presenting opportunities for innovation and growth in the Islamic finance industry.
Islamic Coin and Shariah-Compliant Cryptocurrencies
Islamic Coin, a Shariah-compliant cryptocurrency, is positioned at the intersection of technology, religion, and finance. It operates on the Haqq blockchain, which aims to become an infrastructure for numerous applications. The launch of a Shariah-compliant cryptocurrency involves a stringent process, requiring approval from a supervisory board and obtaining a Fatwa (ruling) from an Islamic authority for Sharia compliance.
Islamic Coin is in private sales mode, emphasizing authenticity before its public launch, and has garnered positive investor sentiment from both Muslim and non-Muslim participants.
The need for approval from an Islamic authority raises questions about the decentralization of Islamic Coin, which is addressed through the development of the Sharia Oracle, conducting on-chain voting, and obtaining Sharia court approval for compliance.
The Haqq blockchain provides a more secure and robust launch process for Shariah-compliant projects, reducing susceptibility to scams and attracting sophisticated investors and institutions to the web3 ecosystem.
Benefiting from the expertise of founders with diverse backgrounds in fintech, cybersecurity, software leadership, and banking, Islamic Coin garners support from VCs, financial institutions, and influential individuals, elevating the project's credibility and bolstering its potential for success.
The emergence of Shariah-compliant cryptocurrencies, exemplified by Islamic Coin, showcases the intersection between Islamic finance and blockchain/cryptocurrencies, potentially driving retail and institutional investment to the web3 space due to the risk mitigation requirements and authenticity provided by Sharia approval.
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Hello friends! Thank you for reading the CryptoJeter newsletter. I'm Austin, the writer behind this weekly publication that highlights emerging web3 startups and showcases the innovation and evolution in the crypto industry.
As someone who was inspired by the financial access that blockchain technology provides, I've been actively involved in the crypto community since my sophomore year at Morehouse College when I bought my first fraction of a Bitcoin in 2017. I've gained valuable knowledge and built a supportive community over the past 5 years.
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