As a crypto asset, Islamic Coin is intended to have a significant and long-lasting impact on one of the world's largest communities. It is the first digital currency with a dedicated Evergreen DAO that supports innovation, provides economic and social benefits, and ensures sustainable, long-term growth.
A universal, unconditional financial obligation that serves the economy's commodity turnover of assets is called fiduciary credit money. As state regulatory bodies, Central Banks' primary responsibility is to regulate the lending practices of commercial banks to non-financial businesses in order to encourage them to maximize profits and maintain the stability of interest rates and exchange rates in the money market. The two-level banking system's hierarchy governs all aspects of the debt repayment process, including interest and principal. First, individuals and businesses outside of the financial sector fulfill their unconditional loan obligations to commercial banks. Second, as part of their unconditional loan obligations to the Central Bank, commercial banks return loans. The efficient operation of market entities occurs when borrowers consistently return loan funds to creditors.
Governments are able to implement a flexible monetary policy with this system by controlling the cost of borrowing money (the key rate).
Since Islam forbids both the payment of interest and the accumulation of interest on money, the current system does not fully adhere to Islamic finance's principles and norms.
The modern Islamic financial system dates back to the 1970s, when Islamic banks were established in Saudi Arabia and the United Arab Emirates, despite the fact that the Islamic financial system was established approximately 1400 years ago. It is essential to keep in mind that all fiat money that states issued as legal tender was backed by gold or silver prior to 1971. Except for their own internal consideration, which supports the possibility of capturing and redistributing wealth, states have no longer been restricted from issuing a new currency in accordance with the gold standard or any other general rule since 1971. Many fuqaha are of the opinion that such behaviors are inconsistent with fiqh.
Islamic Coin is digital money that adheres to the Shariah and is intended to provide Muslims around the world with value. It is built on Haqq, an Islamic blockchain that is just for it. Meaning "Truth," Haqq adheres rigorously to Islamic financial norms and views. Gold and silver are mentioned in the Quran as examples of worldly pleasures (3:14). Because of this, Muqaddimah of Ibn Khaldun wrote that gold and silver should be used as currency.
Similar to the properties of gold or silver, the deflationary nature of many cryptocurrency systems and the requirement to put in some effort to produce them are comparable.
The Islamic Coin cannot be devalued arbitrarily by being "printed." Since there is no interest rate in the system, it is also impossible to cause arbitrary deflation by raising the Central Bank's interest rate (key rate). The price of Islamic Coin is always fair because it is solely determined by the market.
Islamic Coin can only be produced (issued) by network validators and stakers who contribute work and investment at a rate that has been announced in advance.
Islamic Coin, in contrast to fiduciary money, is not managed by banks whose primary goal is to make money by charging interest. Islam forbids interest payments or charges.
A special Evergreen DAO receives 10% of every new Islamic Coin that is produced. This money can be invested in Islamic internet projects or given to Islamic charities. This is the first time a coin with direct economic value has been introduced.
The Evergreen DAO is a virtual foundation for non-profit purposes with an emphasis on community impact and long-term sustainability. It functions as a crypto endowment in practice. Evergreen DAO may also provide funding for activities that are essential to the operation and growth of the Haqq network, as described below. A council of the top five Haqq blockchain validators makes major decisions.
Islamic banking:
is a financial system that is based on Shariah law and Islamic principles. It forbids the imposition of interest and other speculative activities that are regarded as unethical or incompatible with Islamic values. Islamic finance, on the other hand, places an emphasis on principles like fairness, transparency, and risk sharing.
ISLM Coin adheres to Islamic finance principles through the use of smart contracts and a decentralized blockchain network. The project uses a consensus algorithm that is more energy-efficient than the Proof of Work (PoW) algorithm used by other cryptocurrencies and is based on the Proof of Stake (PoS) mechanism.
Other links:
www.islamiccoin.net and @Islamic_Coin on Twitter