$500 Million — The Price of The Islamic Economy Global Expansion
Can the economy be influenced by global paradigms? Examples of the influence of religion on entrepreneurship are in the centuries: Protestant business ethics, the Buddhist cult of labor, and the Jewish entrepreneurial spirit. The digital age was not an exception. Despite the fact that Islam is the youngest religion, it influences the newest digital economic model. Therefore, the FICE crypto exchange, based on the norms of the Sharia law, started working in the United Arabian Emirates.
It is fair to say, that the debates about the halal nature of the cryptocurrency do not stop. For example, Kurdish theologians believe that virtual tokens do not correspond to Muslim traditions. The Higher Council for the issuing of fatwahs that is the part of the Islamic theological union of Kurdistan issued a fatwah, which says: “This is a virtual currency, and Islam does not approve of virtual means”. In addition, scientists emphasized the unknown origin of the cryptocurrency, and this is considered unacceptable from the point of view of Islam.
The main trouble of this intra-Islamic discussion is how to avoid the unacceptable principle of uncertainty. FICE has managed to do it, at the first glance. Coins, connected to alcohol or tobacco business, gambling, and immoral services will not be traded on the exchange. Moreover, the main thing is that tokens presented on this platform must be provided with real and, ideally, material assets. It is easy to guess that the exchange is “tooled” for such virtual assets as the Dubai coin OneGram, backed by gold. Hence, there is the name - originally a gram of this precious metal backs each “chip”. The emission volume of OneGram will be 12,400,768 tokens. Accordingly, the initial price of the entire case is almost $500 million.
It is amazing how easily incompatible things come together at times. The value of the cryptocurrency was often contrasted with the value of gold. On the one hand - consensual recognition and provision of social capital, on the other - a traditional criterion of evaluation, proven by thousands of years. And these values have met in one coin and will be presented on the trading platforms of the world. However, the internal contradiction cannot be avoided anyway. The very nature of the cryptocurrency means that each coin is mined during the mining process (the execution of a certain mathematical algorithm), and each of them, in fact, is unique. How this or that token will be mined, whether it will be involved in immoral affairs is unknown. In addition, it is impossible to verify this, because the cryptocurrency is anonymous.
Another thing is important here. Now, the share of the Islamic financial market is about 1% of the global one. It is not much, keeping in mind that there are about 1.8 billion Muslims in the world. At the same time, their share in the global money turnover is growing by 20% per year.
The launch of the Sharia crypto projects is a logical continuation of this trend. However, as the famous American economist, the World Bank expert Bernardo JAVALQINTO said in the interview with Bitnewstoday.com: “You need to remember that they are creating new financial instruments for the Islamic economy, but this will not replace the gold standard that was created for other purposes”.
The aims of the Islamic economy are clear - the growing global expansion.
Economy in the islamic world is big topic that we wrote about earlier. Saudi Arabia recently banned all crypto operations and Iran is considering issuing their own cryptocurrency. Even in the world of crypto, arabic world stay on the bleeding edge of innovations.