Islamic Coin, the key currency of the HAQQ blockchain platform, aims to establish a financial ecosystem in compliance with Sharia law. In this regard, a collaboration has been initiated with CoinDesk Indices for the research and development of cryptocurrency standards that will meet the requirements of Sharia, primarily for the fintech markets of the Middle East and North Africa.
Finance ecosystem for Islamic countries
This fintech project is focused on creating benchmarks that CoinDesk Indices will license for financial products traded on the exchange. HAQQ, a blockchain platform concentrating on developing a financial system following Sharia and the origin of Islamic Coin, will, in turn, gain access to the CDI API for a range of digital assets, including those listed on their digital asset exchange.
Benchmark in finance is an indicator or financial asset, the return on which serves as a model for comparing the performance of investments.
A Look into the Fintech Future
Mohammed AlKaff AlHashmi, the founder of Islamic Coin, is confident that this partnership can transform the digital financial services industry compliant with Sharia. This is particularly relevant in light of forecasts suggesting that the global market for Islamic finance could reach $3.69 trillion by 2024.
Shariah-compliant cryptocurrencies open a world of digital financial products to the Muslim community. It is important for countries such as Malaysia and Indonesia, where demand for such products is rapidly growing. For their further distribution, such cryptocurrencies must meet modern technical requirements and comply with Islam’s ethical and moral principles (fairness, openness, and accountability). That is, tokens cannot be used in illegal or immoral activities. In the future, Islamic cryptocurrencies should become a full-fledged means of payment for everyday transactions, particularly when purchasing goods or paying for services.
The collaboration between Islamic Coin and CoinDesk Indices opens new horizons for fintech development, offering innovative solutions that align with Sharia principles. This contributes to market diversification and expansion and provides opportunities to include more people in the modern financial system, respecting their cultural and religious values.