Blockchain and other Distributed Ledger Technology (DLT) fascinate scientists, developers and innovators worldwide.
Increasingly, technology pioneers and users, especially outside the G-7, are integrating blockchain in the legal and financial area in order to gain a competitive advantage over competitors.
This is especially true in the Middle East and most of the Maghreb countries. Modern blockchain concepts merge with fair values such as transparency and harmony in accordance with Islamic financial rules.
Financial solutions Integration of Islamic financial ideals
The blockchain is built and anchored according to the same principles that have a positive effect on Islamic ideals.
For example, a typical public ledger is transparent, customer-centric, and relatively inexpensive. It is maintained by a global community that ensures synchronicity, honesty, security and fairness.
These are the same guidelines that harmonize with Islamic rules.
Accordingly, more and more Islamic banks and financial institutions serving more than 2 billion people are adopting blockchain and cryptocurrencies.
An effort to stay open-minded and not deviate from rules that actively bind a community that wants to maintain fairness led ICICI Bank and Emirates NBD to conduct research into blockchain functions. Their goal was to find ways in which the technology could help reduce transaction costs.
Adoption in the Middle East
As a result, Emirates Islamic Bank became the first in the Islamic world to introduce a blockchain for fraud prevention.
This was a pivotal moment for cryptocurrencies and alternative currencies, which were actively innovating to remove fiat from the cloak to ensure efficiency, transparency, and most importantly, affordability.
Often times, the discussion about Islamic compliance with cryptocurrencies is shaped by many opposing factors, including the competing interests of regulators. Legislator, Innovators and religious scholars. Often times, the conclusion of the latter can be multifaceted and, as a rule, contradicting itself.
Establishment of an Islam-compliant transaction blockchain
The Caizchain will launch a platform where people can send money in a safe and know-your-customer (KYC) environment to comply with mandatory Islamic Aws.
It is an innovative and technology-based financial solution that uses cryptocurrency according to Islamic standards, values and rules. Their doctrines and laws prohibit participation in speculation – gharar, charging interest –fish, Gambling and other illegal activities.
Of theirs White paperthe Caizchain solution can act like a reliable friend who is helpful and trustworthy. In addition, it is open to global reach. At the same time, the platform is tech-savvy and modern without giving up sacrosanct Islamic values.
A mixture of modern and Islamic compliance: CAIZ
The caizchain complies with Islamic norms that guide, secure and build funding to enable cheap value transfers and investments in industries not involved in halal.
Through the platform, users can be assured that companies that derive their primary income from illegal activities will not be able to conduct transactions through the platform.
The local currency, CAIZ, is also Islamic. In addition, the wallet complies with Islamic financial standards while the lines of credit are in accordance with Islamic ethics. Although the Caizchain requires users to submit their data, their transactions are transparent but anonymous.
All are traceable in the blockchain. This allows users to shop more cheaply and conveniently, and even withdraw their money using online wallets such as PayPal, debit / credit cars, or other cryptocurrency wallets.
This allows users to use the CAIZ token to fund Mecca Hajj trips and donate through a good cause Zakat and waqfor even make purchases from approved sellers who adhere to Islamic values.