A Cryptocurrency And Blockchain That Complies With Islamic Finance

Last Updated on 5 months by newseditor

Cryptocurrency is a kind of virtual currency that is both secure and decentralized and does not require authentication from a third-party financial institution. Numerous Islamic scholars, legal experts, and market participants have contrasting viewpoints on whether or not cryptocurrency transactions are permitted under Islamic law. To be considered lawful, the issue and use of cryptocurrencies must be free of any components forbidden by Shariah law, such as interest, gambling, uncertainty, deceit, or fraudulent activities.

Caiz Development, a German FinTech firm, is creating a cryptocurrency and blockchain that complies with Sharia law to provide access to banking services for millions of unbanked individuals in developing nations. Caizcoin will be developed in accordance with Islamic monetary standards. Transactions compliant with Sharia law will also be available on the blockchain. The company created Caizcoin that adheres to the rules of the Islamic world, such as not demanding interest, requiring users to verify their identities before making any transactions, and prohibiting anonymous trading.

79% Of MENA Youth Are Unbanked, Making It A Prospective Market For Caizcoin

When measured against global average growth rates, the cryptocurrency industry in Mena stands alone as the world’s most dynamic. Globally, the region accounted for 9.2% of virtual currency transactions from July 2021 to June 2022. Most young people (79%) in the Middle East and North Africa do not have bank accounts. Caizcoin’s main markets aren’t the United States or Europe, where most people already have bank accounts. In contrast, they are the unbanked customers of emerging nations with limited availability of banking services. South-East Asia, the Middle East, and Africa, along with migrants from Latin America and Europe, comprise the company’s most targeted segments.

Read : Crypto Businesses In Dubai To Double By 2024 Due To The Exponential Growth Of The Industry Globally

Serving The Unmet Needs To Unlock Financial Opportunities

The Caizcoin digital currency became the first to be developed according to Islamic guidelines. They have developed their own blockchain system to make transactions quick and cheap. Services such as remittance, DApps, Wallets, and APIs make it simple to meet clients’ ever-changing needs by giving them complete control over their financial dealings. CAIZ aims to help people who are facing financial difficulties and are in the unserved market segments.

Constructing A One-Of-A-Kind Blockchain

Caiz is creating the token on a private blockchain and already has a marketing office operating in the UAE. The company has no intention of creating its own cryptocurrency based on Ethereum. Caiz Development expects to launch its own blockchain and API in the first quarter of 2023, allowing the company to integrate with various financial institutions and payment processors. Due to the platform’s integrated Caiz wallet, users won’t even need a bank account to make transactions. Only smartphones will be needed to join the network.

No Decentralized Businesses; Only Confirmed KYC Wallets

Caiz Development has decided to forgo collaborations with any industry that Islam forbids to attract more Muslims to the platform. Coins are directly linked to the price of precious metals, which reduces speculation possibilities. The company also has a strict no-mining policy. That means the corporation won’t do anything with a decentralized network and will only accept KYC and certified wallets. That’s why it’s safe to assume Caiz will be one of the approved systems for Muslims.

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