Haqq’s Islamic coin to give a boost to Islamic finance

While cryptocurrencies offer numerous benefits, such as decentralisation, security, and fast transactions, their compatibility with Islamic finance has been debated. The concept of cryptocurrencies such as Islamic Coin, which is Sharia-compliant and built on the Haqq Blockchain, has gained traction around the globe.

The asset focuses on charitable actions and Shariah-compliance in a way that makes it attractive to both Muslims looking for digital Islamic financial options and non-Muslims interested in philanthropic causes.

Islamic crypto: Benefits for Muslims and beyond

Shariah-compliant cryptocurrencies are designed to adhere to the principles of Islamic finance. According to NASDAQ, the key criteria for Islamic finances include the absence of interest-based transactions (instead emphasising fair and equitable exchanges), transparency and certainty in contractual terms, and avoidance of speculative activities and gambling.

This type of cryptocurrency seeks to embody these principles through transparent and ethical practices, offering a viable financial solution for the Muslim community. As Muslims represent nearly a quarter of the world’s population, the potential for such an initiative is clear, and Islamic coin has already raised millions despite its youth.

The role of Islamic coin

Islamic Coin, as one of the premier Islamic cryptocurrency projects, aims to facilitate financial growth while adhering to Islamic principles. By providing a Islamic alternative to traditional cryptocurrencies, Islamic Coin offers a secure and transparent platform for Muslim investors and individuals seeking Sharia-compliant investment opportunities.

Islamic Coin fulfills Shariah compliance in several ways, the first and foremost being devotion to charitable causes. Each time a new Islamic Coin token is minted, 10 per cent of the issuance is deposited into an Evergreen DAO for future investment in Muslim communities or charities.

Secondly, as a native coin of the Haqq blockchain, it adheres to the standards of the Haqq Network, which ensures every aspect complies with the key criteria of Islamic finance. In June 2022, leading Muslim authorities sanctioned the project’s continued development.

The project's emphasis on ethical practices and adherence to Islamic financial principles caters to the specific needs of the Muslim community and attracts global investors looking for ethical options.

Early adoption numbers indicate that Islamic Coin is on the right track as well. Even prior to listing, Haqq’s token attracted over $200 million in investments, an amount made all the more impressive considering the current bear market. Globally, the coin already has over one million followers, while its parent organisation reported over 100,000 downloads of their in-house Haqq wallet. This interest is likely due to new Muslim users excited to have an outlet or enthusiasts interested in an ethics-driven token.

An ethical future for crypto

Islamic cryptocurrencies have emerged as an innovative solution combining blockchain technology's benefits with ethics and Islamic principles. As the Muslim countries recognise the potential of these offerings driving financial growth, Islamic Coin showcases how these digital assets can provide ethical and transparent investment opportunities to attract local and global investors.

As development continues to embrace financial innovation, the convergence of Islamic-centered cryptocurrencies and Islamic finance principles paves the way for a thriving ecosystem that supports economic growth, and fosters financial inclusion.

— Vaibhav Bhargava is the contributor at Hackernoon and Readwrite.

• KT Network