Dubai’s start-up company OneGram is trying to prove its cryptocurrency isn’t running against the Muslim faith, in a bid to make to make its coin more popular with the Muslim investors. Bitcoin is becoming a subject of interest in the Gulf and Southeast Asia, both economically very well-developed regions. However, the status of crypto within Islam remains unclear, as the Sharia law prioritizes physical asset-based economy and doesn’t support monetary speculation for its own sake.
These doubts led Islamic scholars to define the status of crypto within their religion. Cryptocurrency developers are trying to lure Muslim investors by tying their coin to physical asset recognized by the Muslim faith. That’s one of the reasons each OneGram cryptocurrency unit represents a gram of actual gold which is kept in a bank. The aim is to exclude speculation.
Ibrahim Mohammed, the company founder states:
“Gold was among the first forms of money in Islamic societies so this is appropriate. We are trying to prove rules and regulations from sharia are fully compatible with digital blockchain technology.”
So far, the value of all issued OneGram coins reaches tens of millions of dollars. Over 60% of the coins are still to be purchased, but the company plans to release the remaining coins before putting them on the exchange in late May.
To further prove its compatibility with the Muslim standards, One Gram has been granted the approval from Dubai-based Al Maali Consulting, one of the prominent few companies involved in Sharia law financial consultation. National sharia authorities. however, didn’t explicitly stated their stance on Bitcoin, so all statements from international advisory firms are just recommendations