What is Islamic Coin (ISLM), and how does it work?

All you need to know about Islamic Coin (ISLM)

Islamic Coin (ISLM) is a Sharia-compliant digital currency, which will be released on September 1, 2023. The creators of this coin aim to revolutionize Islamic finance. In this article, we will learn about what this cryptocurrency can be used for and what obstacles it may face in the future, its accessibility, and whether it can become a cryptocurrency that is accepted by the world of two billion Muslims.

As of July 2023, Islamic Coin has raised USD 400 million in funding. While this huge investment doesn’t guarantee success, it certainly puts it in the ranks of prominent cryptocurrencies.

Islamic Coin system review, picture taken from pixabay

Introduction to Islamic Coinage (ISLM).

According to CoinMarketCap, there are about 22,932 cryptocurrencies in the world, but many of them are “dead” or ineffective. The number of active cryptocurrencies is only up to 8,000. Islamic Coin entered the game a little late as a new crypto, but its unique selling point is that it is the only cryptocurrency of its kind.

It was specially designed to meet the values of Muslims. The Muslim community is a potentially huge market of 1 to 2 billion that has grown worldwide. Islamic Coin (ISLM) is a digital currency based on the principles of Sharia. It is the first cryptocurrency of its kind. Which will be released for sale on September 1. Haqq Blockchain Company will use USD 400 million in funding for its launch.

What does Sharia compliance mean?

Sharia-compliant means adhering to the principles of Islamic law.

• Islamic principles prohibit the charging or payment of interest, and the same applies to profit sharing or risk sharing.

• Unsecured transactions are not permitted under Islamic financial principles. Agreements should have clear terms and conditions, and everyone involved should have a good understanding of the potential consequences.

• Activities that are similar to gambling or speculation, such as giving profits based on chance rather than actual trading, are not permitted.

• Taking financial aid from forbidden activities is also prohibited in Islam (alcohol, gambling, pork, and immoral business).

• Businesses must strive for social responsibility and improvement of society and the environment.

• Make transactions based on tangible assets.

• Excessive risk-taking is discouraged.

• A percentage of profits should be given to charity.

Sharia finance is an alternative financial system in which financial services remain within limits and subject to Islamic principles. These are the principles on which cryptocurrencies like Islamic Coin will be sold.

It may be a powerful vision, but is it practical? In recent days, in some parts of the Middle East, especially in countries like Iran, people, especially the young generation, are losing their faith in Islam.

What is Fatwa?

Recently, Sheikh Dr. Nizam Muhammad Saleh Yaqoobi issued a fatwa to approve the activities of Islamic Coin. Islamic Coin is known as the ‘gatekeeper’ to trillions of dollars in Islamic financial products. A fatwa is an “opinion” issued by an Islamic authority that states whether Shari’a principles are being followed in any matter or matter. Islamic coin claims to have gained acceptance through Fatwa and is poised to revolutionize Islamic finance.

Big Names Behind Islamic Coins

There are many big names behind Islamic coins. The first among them is the name of computer engineer Muhammad Al-Kaaf, who is the co-founder of ISLM. Another prominent figure involved in this project is Sheikh Dr. Nizam Muhammad Saleh Yaqoobi, who is an expert on the US$ 4.2 trillion Islamic financial market. Hussain Muhammad Al Meeza is an Islamic banker associated with Dubai Islamic Bank and is providing consultancy for this coin. Peter Raftery, who is a fund manager at the Abu Dhabi Investment Authority, is also on the board of this coin, in addition to the princess from the ruling family of Dubai, Sheikha Maryam Sohail Obaid Sohail Al Maktoum, and others are also on the board of this project.

Charity and donations via Islamic Coin 

Farid says that another positive feature of this coin is that whenever it is commented on, 10% of its value will be saved, which will be used for charity and the benefit of the Muslim community. If only 3 to 4 percent of Muslims who trade in cryptocurrencies join the Islamic coin network, this coin can become like Bitcoin. If this happens, his net worth will reach $1 trillion and $100 billion will be used for charitable purposes for the Muslim community.

In Farid’s opinion, the Muslim community should not adopt crypto especially Islamic coins. He said, “We should keep researching cryptocurrencies so that we don’t lag behind the rest of the world. We Muslims should understand the crypto world and take advantage of it for our community.”

In Bitcoin

The most popular cryptocurrency by market cap is Bitcoin. Bitcoin is more widely adopted and can be spent in the real world. The question then is, why would Muslims adopt an Islamic coin when they can just use Bitcoin? A factor in its adoption may be that several Muslim authorities have declared Bitcoin “haram”. 

What makes Vine different from other cryptos is that it is the currency’s advantage.

An Islamic coin could make a significant presence in the crypto space. A Sharia-compliant digital currency that matches the requirements of practicing Muslims may well qualify to become the next big crypto.

However, not all Muslims agree with its principles, nor do all Muslim authorities agree with the fatwa. Which can make a difference in its acceptance in the future. “We are proud to build and deliver a Shariah-compliant, immutable, sovereign financial system that serves the Muslim community. This currency is a pillar of stability that is aligned with Islamic values and an argument for a bright future in a changing world,” Islamic Coin co-founder Muhammad Al-Kaaf said in a statement.

The project has tied up 20 payment firms in the Middle East and North Africa (MENA) region. Now, whether the Islamic coin will take away the honor of being the biggest crypto from Bitcoin is to be seen. Or will it live up to its expectations?

Note: It took this idea from a newspaper article and review system. You can disagree. 

It is better to adopt a reliable source of income by spending some time on real business, rather than relying on money-promising business. 

You can comment below your point of view about Islamic Coin and such online businesses.