An Interview With IslamicCoin – BitcoinWorld

Q: What inspired you to start Islamic Coin?

What inspired me to start Islamic Coin was a deep concern for global issues related to money and resources, particularly poverty and the lack of basic necessities for many. Witnessing the unethical financial practices and imbalances in the world’s economic systems troubled me. I believe there is ample abundance on Earth without the need for unethical wealth accumulation. Addressing poverty and promoting ethical finance served as my motivation for creating the project. 

Even in the current bear market, the combined digital asset market cap stands well above $1 trillion. Cryptocurrencies are key to financial inclusion, and as an alternative way to transfer, receive, invest, and trade funds without relying on traditional financial systems.

After studying various financial systems, I found that Islamic Finance, with its strong ethical foundation, held the answers to these global challenges. It offers straightforward solutions, such as the concept of Zakat, which could eradicate poverty if universally applied. The use of interest-free loans could significantly reduce inflation and financial crises. With decentralized blockchain technology, we now have the tools to support these ethical financial principles and make a positive impact on humanity, which is why I founded Islamic Coin.

Yet despite crypto’s potential, most existing solutions are unfit for use in Islamic finance. With over two billion Muslims worldwide and Islamic finance projected to reach $3.69 trillion by 2024, it’s a market with massive untapped potential and is currently underserved by existing crypto providers. 

Q: What Gap does Islamic Coin fill in the current market?

We can fill a gap in the current market from two sides. First, we aim to combat poverty and ensure that people worldwide have access to basic needs. Second, we promote ethical finance by eliminating interest-based loans and unethical business practices. With the power of decentralized blockchain technology, we can create transparency and community governance, making it possible to uphold these ethical values on a global scale. In essence, Islamic Coin stands as a solution that addresses the pressing issues of our time, fostering a more equitable and ethical financial ecosystem for everyone.

Q: How does Islamic Coin differentiate itself from other Shariah-compliant financial instruments to capture a portion of the market?

Islamic Coin differentiates itself by offering a comprehensive 360-degree Sharia-compliant environment. Many other projects merely have the Islamic title but lack true Sharia compliance. Some focus solely on business transactions, neglecting the broader Muslim lifestyle, while others emphasize different aspects without a strong Sharia advisory board to guide them. So most other Sharia-compliant projects have lost their way in this regard.

Obviously, I don’t expect to conquer the whole multi-billion dollar Islamic financial sector just weeks after ISLM’s launch. Right now, we’re looking to onboard individuals interested in exploring blockchain technology and cryptocurrencies that adhere to Sharia law. As Islamic Coin gains traction and crypto adoption speeds up, we will expand our audience to the global Muslim community.

Q: The HAQQ Blockchain is said to be compatible with existing blockchain ecosystems like Ethereum and Cosmos. How does this interoperability translate to benefits for both developers and end-users in the HAQQ ecosystem?

The HAQQ Blockchain offers seamless compatibility with existing ecosystems. This interoperability benefits developers, allowing them to transition their projects to HAQQ without significant code modifications. Integration is straightforward, flexible, and secure. We want to accommodate developers familiar with market tools and blockchains to make the process easier for them. This approach encourages the development of Sharia-compliant dApps on our platform. Many developers who have already built impressive dApps on other chains are interested in joining our ecosystem. We engage with them to ensure their dApps align with Sharia-compliance, making it easy for them to integrate into our ecosystem.

Q: The Sharia Oracle serves as a gatekeeper, ensuring that only Sharia-compliant dApps are accessible. How does the HAQQ network maintain the integrity of this Oracle?

The HAQQ Blockchain is fully decentralized, which means anyone can propose their project, whether it’s Sharia-compliant or not. However, for a project to gain community adoption and trust, it must align with Sharia principles and the values of the Islamic financial system. To achieve this, the project must apply for the Sharia Oracle. 

The process involves two stages: community voting and evaluation by the Sharia board. Once a project passes these checks, it becomes whitelisted as a Sharia-compliant project. This approach ensures that only projects meeting Sharia compliance standards gain the community’s trust and adoption. While we emphasize Sharia compliance through the Sharia Oracle, our platform remains decentralized, meaning not every project is required to go through this process.

Q: 10% of each Islamic Coin issuance is deposited into Evergreen DAO for further investment or donations to Muslim charities. Can you provide more insight into the governance of these funds and how allocation decisions are made?

The detailed Evergreen model will be published in Q4 of this year for the community. Essentially, when an Islamic Coin is minted on the blockchain, 10% is allocated to the Evergreen DAO. 

As for governance and control, Evergreen DAO operates independently. It’s governed by the community and the Sharia board. There may also be an introduction of an Evergreen DAO board later on. To access funds for a project or charity, applicants need to apply and undergo community voting to gauge community support. Following that, the Sharia board and potentially the Evergreen board assess the project. The crucial aspect to note is that the community plays a pivotal role in the decision-making process through transparent blockchain voting. While I’ve provided a high-level explanation, a comprehensive guide for Evergreen will be published later.

Q: Your team consists of individuals from banking, real estate, cybersecurity, and blockchain development. How do you see this diversity in expertise driving the vision and mission of Islamic Coin, especially in bringing Islamic finance values to the digital age?

Diversity within our team is essential for any project’s success. Each member brings unique expertise to the table. For example, I excel in business strategy, product vision, and artificial intelligence, but I rely on others for areas like cybersecurity and smart contract programming. We also have professionals in banking and finance on our team. This diversity strengthens our project, ensuring a holistic approach that considers not only Sharia compliance and technical aspects but also serves the community more effectively.

Q: With the recent issuance of a Fatwa by leading Islamic finance figures, how do you respond to skeptics who might question Islamic Coin’s authenticity or the credibility of its issuing authorities?

In the case of Islamic Coin, our Fatwa comes from renowned scholars with extensive experience in Islamic finance, adding credibility to our project. They’ve classified Islamic Coin as a digital asset within the blockchain and crypto landscape, issuing a certificate that aligns it with Islamic principles. So, the Sharia Oracle is not about censorship but about ensuring compliance with Islamic values in this evolving technology.

Q: Sharia laws can be interpreted differently based on various schools of thought within Islam. How does Islamic Coin manage potential disputes or disagreements over its Sharia-compliance, especially given that the global Muslim community is so diverse?

Islamic Coin focuses on the ethical values of Islamic finance without delving into areas of religious dispute or sensitivity. 

So we don’t touch the areas where there are a lot of conflicts or sensitivity about finance and business. We don’t go into the areas where there is a lot of debate from different groups or areas that are kind of sensitive. We are purely in tech and ethics and rely on the values of finance.

Blockchain and community governance facilitate this approach. While there may be occasional individuals with differing views, this is common in any project or business. We prioritize delivering value to the community through tech solutions and ethical business practices without promoting any religion or group. Our aim is to provide value and conduct responsible business operations while staying away from sensitive religious topics.

One of the reasons why the Shariah Oracle has two levels of approvals is to minimize the chances of disputes in the Muslim community over Shariah compliance. The members of the Shariah Board have diverse backgrounds to cover as much of the global Muslim community as possible.

Q: How do you ensure that the interests of early private investors don’t overshadow the broader mission of creating an ethical, community-driven financial ecosystem?

We prioritize the selection of investors to ensure the project’s integrity. We’ve turned down substantial offers from investors who might exert undue influence on the network. Even the investors we accept undergo a vetting period to prevent immediate allocation access, which safeguards against market manipulation. 

We conduct rigorous due diligence on all investors, emphasizing their commitment to the project’s long-term vision. There will be a cliff period during which our own coins are locked, ensuring the project’s continued ethical progression. These measures collectively assure the authenticity and credibility of Islamic Coin and its issuing authorities.

Q: Given that key decisions for the Evergreen DAO are made by HAQQ network validators, isn’t there a risk of power pooling among a few validators? How does this model ensure representation for the broader community?

In our model, the community plays a pivotal role. They delegate their coins to validators of their choice. The validators then initiate voting, and the top five validators cannot all be from the HAQQ network. Even if HAQQ is among the top five, it only accounts for 80% of the voting rights. The remaining 20% can be influenced by the broader community. In the future, the community may choose to vote for more than five validators, further decentralizing the process. 

Q: While the Sharia Oracle only whitelists Sharia-compliant dApps, how do you address concerns that it might inadvertently become a tool for censorship or exclusion within the broader blockchain and crypto ecosystem?

The HAQQ Blockchain is fully decentralized, which means anyone can propose their project, whether it’s Sharia-compliant or not. However, for a project to gain community adoption and trust, it must align with Sharia principles and the values of Islamic finance. The project must apply for the Sharia Oracle.

The process involves two stages: community voting and evaluation by the Sharia board. Once a project passes these checks, it becomes whitelisted as a Sharia-compliant project. This approach ensures that only projects meeting Sharia compliance standards gain the community’s trust and adoption. While we emphasize Sharia compliance through the Sharia Oracle, our platform remains decentralized, meaning not every project is required to go through this process.