Can Islamic cryptocurrencies save the industry?
Cryptocurrencies lost over a trillion dollars in value in 2022, yet Islamic coins are emerging with ethical practices claiming to potentially resist such losses.
As FTX’s former CEO faces US criminal charges for defrauding investors and stealing billions from customers before filing for bankruptcy in November, new Islamic finance-based coins are being launched by companies claiming that their checks and balances can help reinstate faith in cryptocurrencies.
“Islamic finance can help provide protections with its ethical practices, using the transparency of blockchain technology,” said Mohammed AlKaff AlHashmi, co-founder and chief business officer of Haqq Association, a nonprofit digital financial services company that follows Islamic law.
Haqq Association created Islamic Coin in 2021, an Emirati cryptocurrency that operates under the guidelines of Sharia finance and is set to launch publicly this year.
Islamic Coin used its own Haqq Chain, its blockchain network, to create a compliance verification platform called Sharia Oracle. In this forum, entrepreneurs can present their business ideas or projects on the public blockchain to see whether it is Sharia compliant and receive a tick mark if approved, which is similar to Twitter verification.
