Shariah to Rescue The Future of Cryptocurrency.

Shariah to Rescue The Future of Cryptocurrency.

April 9, 2018 0 By FaletiAbiodun

Bitcoin draws huge attention last year, when it dramatically rise to nearly $20,000, but the story is not the same again, bitcoin has suffer numerous and irregular drop,and caused concern to investors, even numerous government has lost faith in cryptocurrencies, recently that bank of Indian ban banks from transacting in cryptocurrencies.

HOPE FOR CRYPTOCURRENCIES

This fluctuations has put the future of cryptos on the verge, many seems not to see a bright future in digital currency, but theres a good news for digital currency and it’s the Shariah. This is a new version of cryptocurrency and it has started to gain popularity and acceptance among Muslims, and this hopefully can rescue the future of cryptos, its called Gold-backed, shariah-complaint cryptocurrencies.

According to muslims shariah is a religious and social code, and its forbids speculative trading.

However a few companies have find a way to get around this problem. They are launching gold-backed cryptocurrencies which is expected to have less speculative risk than the usual cryptocurrencies.

oneGram a dubai-based firm is issuing a gold-backed cryptos, as the name implies, each oneGram of cryptos unit is backed by a gram of physical gold stored in a vault, the physical asset limit the risk of speculation.

Gold was part of the olden days form of money in Islamic societies so this is appropriate the co-founder of the firm Ibrahim Mohammed told Reuters.” We want to  ensure that the rules and regulations from sharia are fully compatible with digital blockchain technology.”

National shariah authorities in the gulf countries have not ruled whether cryptocurrencies are permissible in Islam, and some gold-backed cryptocurrency has received Islamic approval, HelloGold introduced a gold-cryptocurrency receiving approval from Islamic scholars at Kuala Lumpur-based amanie advisors. According to a Reuters report, tens of millions of dollars worth of the currency have been issued so far. Nearly 60% of the planned number of coins remains to be sold; OneGram hopes to issue them all before listing them on exchanges around end-May.