Islamic finance is growing quickly. Thanks to its strong commitment to Shariah law and ethical practices, huge Muslim populations now have an option to participate in the global economy.
It’s because of this ethical approach that Islamic finance has strong ties to sustainability objectives. Many ethical priorities of Shariah law emphasize economic and social justice, responsible investing, and long-term growth, making it an attractive prospect for Muslims and non-Muslims alike.
The Swiss-based HAQQ Association will introduce a crypto token this year called Islamic Coin. The token will be HAQQ’s way of addressing global initiatives aimed at enhancing the quality of life and promoting a shift towards environmentally sustainable economies. HAQQ will do this by providing support for innovation, creating employment opportunities for young individuals, empowering women in the workforce, and investing in ventures that align with the United Nations Sustainable Development Goals.
Additionally, 10% of every Islamic Coin issuance will be allocated to an Evergreen DAO, which will invest these funds in ventures related to Islam or Muslim charities. This not only brings economic benefits directly to the community but also ensures that the investments have a positive impact on Islamic causes.
Islamic Coin’s executive board recognizes the significance of incorporating environmental, social, and governance (ESG) criteria into investment decisions. ESG factors are crucial in identifying sustainable investment opportunities and generating positive social and environmental initiatives.
By integrating ESG criteria into the investment process, Islamic Coin aims to align its investments with responsible business conduct and sustainable practices. Investments should not only generate financial returns but also contribute to the well-being of society and environmental preservation.
HAQQ’s team of experienced professionals positions Islamic Coin to provide the global Muslim community with a financial instrument for the digital age. The eventual goal is to enable Muslims to engage in seamless financial transactions, benefit from financial innovation, and contribute to philanthropic endeavors.
HAQQ is collaborating with several organizations on Islamic Coin, including the World Green Growth Organization, the 6th Edition of the International Youth Conference, the London-based DDCAP Group, and The Federation of Muslim Associations of Brazil (Fambras). These partnerships will rely on the strengths and expertise of each to promote sustainable growth, help conserve the environment, and empower the youth.
HAQQ and DDCAP recently signed a memorandum of understanding to explore potential collaboration opportunities. The objective of this alliance is to develop industry-grade systems that cater to the growing demand for ethics-first infrastructure. This collaboration will utilize DDCAP’s award-winning Shariah-compliant financial technology — ETHOS AFP — and HAQQ’s digital asset platforms on the HAQQ Blockchain project.
HAQQ Blockchain will serve as an environmentally-friendly platform for various Islamic finance solutions. These include a Shariah-compliant Web3 alternative to SWIFT, a digital asset platform, central bank digital currencies, and tokenization.
“By actively supporting SDGs, both [organizations] appreciate the similarities between the improvements possible with sustainable development,” said HAQQ Co-Founder Mohammed AlKaff AlHashmi. “The aim is to adhere to the principles of Shariah finance, which focuses on fairer, better financial practices.”
With Fambras, HAQQ hopes to establish a sustainable entrepreneurship environment and an efficient Shariah-compliant system. One focus of this partnership will be issuing, maintaining, and validating food certificates, including payment settlement and product tracking through smart GPS QR code integration on the HAQQ blockchain.
The integration should ensure transparency and traceability throughout the supply chain, which is, again, in line with Shariah principles. Fambras and HAQQ will leverage their partnership initiatives to create a robust ecosystem that supports sustainable entrepreneurship within Brazilian Muslim communities.
Whatever the future holds for crypto, digital currencies, and Islamic finance, the amount of excitement, commitment, and interest that HAQQ’s Islamic Coin has generated in such a short time should serve as an indication of future market trends.
Digital currencies and blockchain-enabled services are maturing and becoming more accepted every year despite missteps and overextensions, illustrating that this nascent industry is not one to be ignored. Despite being focused primarily on Islamic principles, these moves towards ethical practices, sustainability, and transparency all seem welcome additions to digital currency and decentralized finance.