Blockchain technology is gaining popularity around the world, and the Muslim community is now getting its first cryptocurrency ecosystem that adheres to Islamic principles and traditions. It’s known as the Haqq ecosystem and has its cryptocurrency, Islamic Coin ($ISLM). According to Arabian Business, the new token’s public launch will occur in May.
Regarding finance, the Haqq ecosystem was created with Islamic principles and traditions in mind. The Islamic Coin is the ecosystem’s primary token of value, providing the global Muslim population with a financial platform that offers a 100% halal cryptocurrency.
The Haqq ecosystem aims to provide a financial platform for the Muslim community that allows for real-time, transparent, and cross-border transactions while supporting Web3 innovations and philanthropy. To achieve this goal, the network has pledged to donate 10% of each Islamic Coin to Evergreen DAO, a non-profit virtual foundation focused on long-term sustainability and community impact. The money will go toward community projects in the Muslim world.
The ecosystem’s non-profit arm, the Haqq Association, has partnered with the International Islamic University of Malaysia (IIUM) to raise awareness of blockchain and crypto technologies in a positive learning environment. This collaboration is intended to aid in the adoption of the Haqq ecosystem.
Furthermore, Haqq has formed several commercial partnerships with retail and e-commerce platforms to introduce Sharia-compliant Web3 technologies into traditional Web2 environments. The project recently collaborated with Holiday Swap, the world’s largest home exchange platform, to migrate the company’s tokenized operations to Web3.
To ensure that projects wishing to launch on the Haqq blockchain adhere to Islamic principles, the Islamic Coin has appointed a Sharia board of 40 banks, including Standard Chartered, Abu Dhabi Islamic Bank, and Dubai Islamic Bank.
Because the blockchain is public and open-source, projects that are not Sharia-compliant can still be launched on the network. They will not, however, receive the badge that indicates compliance and fosters greater community trust.
According to Haqq co-founder Mohammed AlKaff AlHashmi, Islamic Coin has the potential to become a tier-one asset. “If only 3-4% of the online Muslim community holds the coin, it could become a Bitcoin-scale asset,” AlHashmi predicted.
By 2024, the global Islamic finance market is expected to exceed $3.69 trillion, while the Halal products market is expected to exceed $4 trillion. With a worldwide population of more than 1.8 billion people, AlHashmi believes the Muslim community represents an “untapped and underserved” market in the crypto world.
In 2022, cryptocurrency transactions in the MENA region were worth $566 billion, a 48% increase from the previous year. The Haqq ecosystem and Islamic Coin aim to provide a financial platform that meets the needs of the Muslim community in response to the growing demand for Sharia-compliant financial services.