Blockchain and other Distributed Ledger Technology (DLT) captivate scholars, developers, and innovators worldwide.
Increasingly, technology pioneers and adopters, especially outside the G-7, are integrating blockchain in legal and financial spheres to have a competitive edge over competitors.
This is especially true in the Middle East and most Maghreb countries. Modern blockchain concepts merge with fair values like transparency and harmony in sync with Islamic finance rules.
Financial Solutions Integrating Islamic Finance Ideals
The blockchain is built and anchors on the same principles that resonate positively with Islamic ideals.
For instance, a typical public ledger is transparent, client-facing, and relatively cheaper. It is maintained by a global community ensuring synchrony, honesty, safety, and fairness.
These are the same guidelines harmonious with Islamic rules.
Accordingly, more and more Islamic banks and financial institutions, serving over 2 billion people, are adopting blockchain and cryptocurrencies.
The quest to remain open-minded while not deviating from rules actively binding a community keen on maintaining fairness saw ICICI Bank and Emirates NBD research about blockchain capabilities. Their goal was to find ways through which the technology can help reduce the cost of transactions.
Adoption in the Middle East
Subsequently, the Emirates Islamic Bank became the first in the Islamic world to adopt blockchain for fraud prevention.
This was a definitive moment for crypto and alternative currencies actively innovating to unseat fiat from the mantle in place for efficiency, transparency, and most importantly, affordability.
Often, the discussion on Islam compliance of cryptocurrencies is shaped by many opposing factors, including the competing interest of regulators, legislators, innovators, and religious scholars. Often, the conclusion of the latter can be diverse and usually contradictory.
Building An Islam-Compliant Transactional Blockchain
The Caizchain will launch a platform where people can send funds in a secure and Know-Your-Customer (KYC) environment in adherence to binding Islamic aws.
It is an innovative and technology-based financial solution that uses cryptocurrency according to Islamic standards, values, and rules. Their teachings and laws prohibit involvement in speculation–Gharar, charging of interest–riba, gambling, and other illicit activities.
From their whitepaper, the Caizchain solution can act like a reliable friend that’s helpful and trustworthy. Moreover, it is open-minded with global outreach. Concurrently, the platform is tech-savvy and modern without abandoning sacrosanct Islamic values.
A Mix of Modern and Islamic Compliance: CAIZ
The Caizchain complies with Islamic norms guiding finance, secure, and built to enable cheap transfers of value and investment in industries that are not involved in halal.
Through the platform, users would be sure that businesses who draw their primary revenue from illicit activities cannot transact using the platform.
The native currency, CAIZ, is also Islam compliant. Additionally, its wallet conforms to Islamic Finance Standards while its credit lines are in sync with Islamic ethics. Although the Caizchain requires users to submit their details, its transactions are transparent but anonymous.
All are traceable on the blockchain. This way, users can shop cheaply and more conveniently, even withdrawing their funds using online wallets like PayPal, debit/credit cars, or other cryptocurrency wallets.
Through this, users can use the CAIZ token to finance Mekka Haddsch trips, donate to a noble cause through Zakat and waqf, or even make purchases from approved vendors adhering to Islamic values.