What is financial and social freedom? For decades, the state systems of the world have aimed to centralize power, cash flows, natural resources and other values that were to become the basis for the well-being and prosperity of all people. As a result of the financial crisis of 2008 a new technology (blockchain) and a new class of digital assets (cryptocurrencies) were born. They could change the situation but since the advent of Bitcoin and blockchain internal and external conflicts of centralized management have become even stronger and most cryptocurrencies have turned into another tool of uncontrolled and even dangerous manipulation of financial markets. Therefore, now more than ever it is important to reconsider the value system and start using blockchain for the real benefit of people. Islamic Coin is not only a digital asset created and designed to harness the value of the global Muslim community. It’s a whole ecosystem, based on Islamic financial system’ principles and Haqq chain platform. Why did the developers choose Islamic Finance as a basis? The WhitePaper and the main site demonstrate us this why.
From 1971 Governments and Central Banks are free to create currencies that are not backed by Gold and Silver. Fuqaha assessments suggest that these practices don’t correspond to Fiqh. The entire global fiat supply is circulated within the banking system. Banks earn interest which leads to Riba. Fiat money cannot be fully relied upon, as its value can be manipulated.
According to the Global Islamic Economy Report, the volume of the Islamic financial sector was $2.88 trillion in 2020 and is expected to grow to $3.69 trillion by 2024. According to the same report, two of the four main factors influencing this growth in general and the Islamic economy, in particular, are the rapidly growing Muslim population, the spread of digital technologies, and mobile communications. Islamic financial system has been virtually untouched by the recent financial crisis due to its prohibitions on speculative transactions and uncertainty, as well as the attention it pays to fairness and risk-sharing. Islamic finance is a rare example, where the system featuring certain limitations and restrictions is more sustainable and powerful, compared to the system where such limitations are not present.
Blockchain is the technology behind cryptocurrencies is compared by many experts to the Internet itself in terms of its importance and long-term transformative impact on humanity. In general, Blockchain does two things it allows:
Mission of the Islamic Coin project is to empower the world’s Muslim community with a financial instrument for the Digital Age, that enables seamless transactions and interaction, while supporting innovation and philanthropy. IslamicCoin has been issued a FATWA in line with Islamic Finance International Codes of Conduct and Compliance.
1. Haqq Chain platform is built using a technical framework that is well-known in the blockchain field, which is the Cosmos technical framework.
2. 10% of the currencies issued on the platform will be automatically converted to the Evergreen Dow Endowment Fund (An independent decentralized entity). The Evergreen Fund is a non-profit Swiss Foundation focused on worldwide sustainability and global impact. Adhering closely to the Principles of The Koran, key decisions are made by consensus validators, embedded on the Haqq Blockchain.
After reviewing the platform and the White Paper it is clearly seen that HAQQ chain is a safe and tested technology through which financial transactions are conducted and users’ funds are protected.
1. Currencies with no specific purpose behind their issuance other than being a store of value and having a price, where the customer aims to save, use in purchases and reservations, get wages through and pay taxes using them in a number of countries
2. Currencies issued with the purpose of using them for a particular product or on a specific platform, so that it is the official currency through which evaluation and purchase of services and products provided on those platforms can be made. Some of these currencies can become famous and can have an increase in demand that it can have the characteristics of type 1 as well.
3. Currencies issued against another financial asset, such as gold, dollars, euros, etc. so that the value of the currency is like the value of the financial asset against which it is issued.
4. Non-Fungible Tokens, usually symbolized by NFT. These are currencies symbolizing the ownership of NFTs for certain assets, images or specific property, where the currency owner shall be the owner of the asset, image or associated property.
The project team consists of young and dynamic business, technology and finance letters from all over the world, Muslims and non-Muslims. This qualified team was selected to work in tandem with Islamic scholars, economists and financial experts to get recommendations on the implementation of Islamic values in every aspect of their finished product.
Islamic Coin follows the guiding principles of the Islamic faith, which corresponds to the best model use of blockchain technologies. Remaining within the values of Islamic law, the tokens of the project will be used for financial benefit, for example, for cooperation with organizations and institutions and making donations.
There are other great advantages besides a solution compatible with Islam. The Islamic coins is extremely interesting for investors around the world and all who is interested in truly promising crypto project.