Islamic Coin devs announced on Friday that their digital currency had gained a fatwa from Muslim authorities. Fatwa, in Islam, is a legal opinion or interpretation of a point of a Sharia law issued by the Islamic scholar. While such a document doesn’t have a binding legal effect, a positive fatwa in the case of Islamic Coin clears the path to broader adoption, as compliance with Sharia law will allow the project to direct its product to devout Muslims.
“Our mission is to empower Muslim communities around the world with a financial instrument that is not only Shariah-compliant but is also one that keeps up with the financial trends of today’s digital age,” Islamic Coin tweeted.
The fatwa was signed by renowned Muslim scholars, including a prominent Shariah expert Sheikh Nizam Yaquby, who was named a “gatekeeper to the $1 trillion market for managing Muslim wealth” by Bloomberg. Sheikh Yaquby serves on over 40 Shariah Advisory Boards, including Standard Chartered, BNP Paribas, Al Rayan Bank, Abu Dhabi Islamic Bank, S&P Dow Jones, Lloyds Bank, and the Accounting and Auditing Organization for Islamic Institutions, making recommendations on which financial products meet the requirements of the Islamic law.
According to scholars, there are no objections to establishing a blockchain and issuing Islamic Coin under the conditions that an accredited software audit company inspects the blockchain and the authority committee is appointed for the project’s DAO. Shariah experts also pointed out that Islamic Coin holders should pay Zakat, a mandatory donation to the poor and vulnerable under the Islamic law, after purchasing or minting according to the existing rules.
“The entity must obtain the Shariah Authority approval for new smart products and contracts before launching them,” the scholars added.
Islamic Coin (ISLM) runs on its native blockchain dubbed Haqq, an Arabic for “truth.” Haqq is a proof-of-stake network compatible with the existing ecosystems of Ethereum and Cosmos “with fast-finality and high transactions throughput.” ISLM holders can earn staking rewards by delegating their coins to Haqq validators.
Every time a new token is minted, 10% goes to the Evergreen DAO, Islamic Coin's social responsibility, charity, and investment initiative. The collected funds will benefit Muslim ventures and charities, bringing direct economic value to a community.
"We are proud to build and deliver a Shariah-compliant, immutable, independent financial system that serves the Muslim community and beyond. A pillar of stability, intertwined with values that are future-proof in a changing world," said Mohammed Alkaff, Islamic Coin co-founder.
Another co-founder of Islamic Coin is Hussein Mohammed Al Meeza, an Executive Director of Dubai Islamic Bank, the first Shariah-Compliant financial institution in the world. Al Meeza has over 45 years of experience in the fields of Islamic banking, finance, and insurance, also serving as the CEO of Dubai Islamic Insurance Company.
Islamic Coin will launch a private sale soon and says it will be available on “various CEXs and DEXs.”