Muslims Now Have Access To Gold-Backed Cryptocurrencies
Cryptocurrency is definitely not good for your health. With price instability and dropping prices on a weekly basis, there is a huge chance for one to make quick money, however, the possibility to lose money really fat is also possible.
That does not seem acceptable for Muslim countries. In the Islamic faith, it is of the opinion that the economic activity should go according to genuine, physical assets and not on prediction. Practicing Muslims should also not engage in banking products that offer profits through interest payments. Hence many people in the Gulf States and beyond do not regard cryptocurrencies to be according to the Sharia law.
All cryptocurrencies have not been officially restricted in Saudi Arabia and the United Arab Emirates, these governments have been alerting their citizens regarding bitcoin purchases. As a result of this, cryptocurrency trade has been lagging behind in Muslim markets. Interestingly, there is a lot of money to be made in Islamic finance. Muslim nations account for about 1% of global GDP.
To cater to these Muslim nations, a new type of Sharia accepted crypto is coming up.
A startup has been established in Dubai that created a cryptocurrency that is supported by one of the world’s most stable asset: gold. OneGram’s pitch is that every unit of significant worth is supported by a physical gram of gold that is kept in a safe. This subsequently constrains instability and theory and has been considered satisfactory under Islamic standards by Dubai-based al-Maali Consulting.
“We are trying to prove rules and regulations of sharia are fully compatible with digital blockchain technology,” said co-founder Ibrahim Mohammed, according to Reuters.
Gold remains generally steady—it has floated amongst $1,200 and $1,350 for as long as a year—while bitcoin’s cost vacillates broadly every day. In the wake of moving to an unequaled high of about $20,000 in 2017, the cost has been falling this year, sitting at the time of composing at $7,000.