• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
sharia

United Arab Emirates: OneGram, Gold-Backed Cryptocurrency That Complies With Sharia Law

newsbtc by newsbtc
5 years ago
in Cryptocurrency news
Reading Time: 3 mins read
Advertisement

United Arab Emirates-based OneGram is issuing a gold-backed cryptocurrency in attempts to convince Muslims that investing in cryptocurrencies complies with their faith.

Islam and Cryptocurrency

The growing global interest in cryptocurrencies naturally extends into the Gulf and southeast Asia, the main centers of Islamic finance. But because cryptocurrencies and associated technologies are products of financial engineering and objects of speculation, the coins don’t fit particularly well with the religion. This is because Sharia principles, in addition to not permitting interest payments, emphasize real economic activity based on physical assets, not speculation.

 In attempts to sway the debate, cryptocurrency startups are looking to launch instruments backed by physical assets and thereby certified as valid by Islamic advisors. Case in point: in order to attempt to limit speculation, each OneGram cryptocurrency unit is backed by at least a gram of physical gold stored in a vault.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

“Gold was among the first forms of money in Islamic societies so this is appropriate,” said Ibrahim Mohammed, who founded the firm with other investors last year. “We are trying to prove rules and regulations from Sharia are fully compatible with digital blockchain technology.”

OneGram

So far, tens of millions of dollars worth of the coins have been issued (about 60% of the total planned amount). OneGram hopes to issue all of them before an exchange listing that’s planned for the end of May. The company obtained a ruling that its cryptocurrency conforms with Islamic principles from Dubai-based Al Maali Consulting, which is one of dozens of advisory firms around the world that offer opinions on whether financial instruments meet Sharia standards.

OneGram isn’t the first startup to take this approach. In Malaysia, HelloGold launched an initial offer of its gold-backed cryptocurrency in October, after receiving approval from Islamic scholars at Kuala Lumpur-based Amanie Advisors.

Manuel Ho, HelloGold’s chief marketing officer, said its coin conforms with Islamic principles because transactions occur within a defined period, making them less volatile and addressing the issue of ambiguity of pricing. There are others, too: United Arab Emirates-based Halal Chain conducted an ICO in December. Halal Chain’s price is linked not to gold, but to data on Islamically permissible goods.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Sharia Law Globally

National Sharia authorities have not ruled on whether cryptocurrencies are permissible, and while several global bodies recommend standards for Islamic finance, none has the authority to actually impose them. Many governments seem ambivalent: worried about the potential for instability, but unwilling to lose the chance of benefiting from new technology.

The Saudi Arabian and UAE central banks warned their citizens about the risks of trading Bitcoin, but have not imposed outright bans. Islamic jurists in South Africa have ruled in favor of cryptocurrencies, arguing they have become socially acceptable and commonly used.

In October, however, the Durban-based Darul Ihsan Centre refrained from endorsing them, citing concern over potential pyramid schemes. Further, some scholars in Turkey, India, and Britain have labeled cryptocurrencies impermissible. In January, Egypt’s Grand Mufti declared they should not be traded.

What makes the debate particularly complex is that there are thousands of digital coins each with unique features related to distribution, mining, and trading, said Farrukh Habib, research officer at Malaysia-based International Shariah Research Academy for Islamic Finance. Because of this fact, Habib believes that a “blanket” Sharia ruling on cryptocurrencies is not appropriate: 

“They are also very different in terms of their underlying commodities, projects or businesses, so it’s not appropriate to have a blanket Sharia ruling for all,” said Habib. “Most of the existing Sharia rulings either deal with only Bitcoin, or include all types of cryptocurrencies, disregarding their peculiarities.”

Tags: blockchaincryptocurrencyHelloGoldIslamislamic financeMuslimOneGramReligionSharia LawUnited Arab Emirates
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
newsbtc

newsbtc

Related Posts

Relocation into the virtual Silicon Valley San Crypto: pros and cons, potential metrics

Relocation into the virtual Silicon Valley San Crypto: pros and cons, potential metrics

3 hours ago
Bitcoin

Bitcoin Back Above $27,600 As US Banking Crisis Is Far From Over

5 hours ago
SEC Hands Coinbase A ‘Wells Notice;’ Coinbase Rebukes

SEC Hands Coinbase A ‘Wells Notice;’ Coinbase Rebukes

8 hours ago
Bitcoin And USDT

Quant Points Out Curious Relationship Between USDT Inflows & Bitcoin Price

17 hours ago
Bitcoin

Bitcoin Rally Driven By Record Open Interest In Derivatives Market

18 hours ago
The Bet is Bringing Decentralized On-Chain Gambling to Web3

The Bet is Bringing Decentralized On-Chain Gambling to Web3

20 hours ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

TMS Network (TMSN) Presale Success Stirs Markets While Experts Advise To Be Cautious With Conflux (CFX) And Ravencoin (RVN)

March 23, 2023

Solana (SOL) Price Prediction; TMS Network ICO (TMSN) And Avalanche (AVAX) Shines

March 23, 2023

Cryptocurrencies To Get Before April 2023 Ends: Conflux (CFX), yearn.finance (YFI) and TMS Network (TMSN)

March 23, 2023

ScalingX and Buidlbox Partner to Host “The Hunt for X” Zero-Knowledge Tech Hackathon

March 22, 2023

Why is Avorak AI Pumping? – a Guide To AI Cryptos, Fetch.ai, SingularityNET, And More

March 22, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins
  • Play Finance

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.