OneGram argues that cryptocurrencies are allowed in Islam. The new sharia-approved cryptocurrency introduced by a Dubai-based startup (backed by one of the oldest and stable assets around the world; Gold) called OneGram complies with the Islamic faith.
This cryptocurrency gas been introduced in order to encourage more and more Muslims to invest in digital currency.
As the Islamic faith says that the economic activity should be based on real physical assets and not mere speculations, OneGram argues that as each unit of pf digital value is backed by at least a gram of actual gold kept in a safe, to prove the allowance of cryptocurrencies in Islam.
So, now the bans on cryptocurrencies in Islamic states get challenged as OneGram says that the practice of investing in cryptocurrency limits volatility and speculation aspect of the cryptocurrency, so it is acceptable under Islamic laws.
Pure monetary speculation is frowned upon by the Islamic teachings alongside banning investment in banking products that offer returns through interest payments.
Ibrahim Mohammed is the co-founder of the startup OneGram who says, “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.”
The startup has already issued tens of millions of dollars worth sharia-approved cryptocurrency and will sell 60 per cent of the planned number of coins before listing them on the exchanges before the end of the next month.
The gold price is still utilised to measure the way the global economy is doing as it is unstable, the people are likely to see a spike in the price of the metal.
The reason for its acceptance of gold in Sharia is that it is a safeguard against economic unrest or inflation as at the end of the day a person will own a physical asset to its name, and that’s why the cryptocurrencies are said to be due in Islam.
All forms of cryptocurrencies were banned in Pakistan the last week. State Bank of Pakistan banned these currencies saying that “virtual currencies provide a high degree of anonymity and potentially can be used for facilitating illegal activities.”
Though it will take a bit of time, it is believed that in the future, a gold backed cryptocurrency will change the government’s decision about digital money, and Pakistanis will be allowed to trade in cryptocurrency again.