As cryptocurrencies are becoming an important part of the investment world, we want to talk about 3 types of Shariah-certified halal cryptos. However, we are not saying that other types of cryptocurrencies are haram. Depending on their nature, cryptocurrencies can be halal or haram. Evidently, these 3 cryptocurrencies have already gone out of their way to be shariah-certified and target Muslim investors.
3 types of Shariah-certified Halal Cryptos
1. Lumen (XLM)
Firstly, let’s introduce Lumen. Lumen works on the stellar network. Stellar is a decentralized mechanism that allows you to transfer digital money to fiat money. It aims to make borderless transactions possible regardless of a particular currency.
Stellar, based in California, has acquired Islamic scholars’ approval for its blockchain platform and related cryptocurrency, with the goal of incorporating the technology into the realm of shariah-compliant financial products. Furthermore, Stellar received certification from the Shariyah Review Bureau (SRB), an Islamic advising agency accredited by Bahrain’s central bank,
2. OneGramCoin (OGC)
Secondly, we want to cover OneGramCoin. In general, OGC is a digital asset backed by gold. One gram of physical gold backs each OGC coin which also allows the coin some price stability. OGC utilizes a Proof of Stake protocol which is significantly more energy-friendly than Bitcoin.
OneGram is the first cryptocurrency to be certified in conformity with Shariah. Al Maali Consulting Group is the one who regulates and certifies it. In addition, OGC has won awards such as Best Islamic Cryptocurrency in 2017 and Best Islamic Fintech Product in 2018.
3. X8
Lastly, we will discuss X8. Like Lumen, the Shariyah Review Bureau certifies X8. Using a basket of fiat currencies and gold, X8 ensures a strong and stable digital currency. X8 uses automatic reserve management (ARM) artificial intelligence to trade the currencies and gold in its basket as a shield against inflation.
At Musaffa, we continuously monitor the market and rate individual stocks based on their compliance with Islamic laws. Importantly, by using our platform, investors can invest worry-free in halal securities. We use an intense screening process to determine whether or not company operations and financials are halal (Shariah-compliant).
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