What Makes a Cryptocurrency Islamic, and Is It Really Ethical?

What Makes a Cryptocurrency Islamic, and Is It Really Ethical?

CAIZ
CryptoFinanceIslamic Finance
February 24, 2025
What Makes a Cryptocurrency Islamic, and Is It Really Ethical?

What Makes a Cryptocurrency Islamic, and Is It Really Ethical?

The global crypto market today stands at $3 trillion and has evolved through wild swings, crashes, and comebacks for over a decade. Bitcoin, the first and largest cryptocurrency, has drawn in institutions, regulators, and millions of people looking for a new kind of digital financial system.

But Bitcoin didn’t stop at just being a digital currency. It sparked an entire ecosystem, with thousands of cryptocurrencies popping up. Today, there are over 10,000 of them, and new ones keep coming. But here’s the real question for the world’s 2 billion muslim population: does an Islamic cryptocurrency exist? Is there even such a thing as a “Halal” crypto? And if so, what makes a cryptocurrency Islamic or non-Islamic?

Let’s dig deeper and get to the bottom of what truly defines an Islamic cryptocurrency.

More than 24.1% of the world’s population is Muslim, and a significant portion remains unbanked. Religious beliefs are among the key barriers to accessing useful and accessible financial products through conventional banking and financial systems.

On the other hand, cryptocurrency by nature is decentralised, digital, and borderless. It offers a real alternative to traditional financial products, which often fail to reach people in rural areas due to a lack of digitisation. Since crypto operates without a central authority, anyone can quickly access financial products like savings, credit, cards, and insurance – all at relatively low fees.

Is There Any Islamic Cryptocurrency? 

While crypto removes several barriers, it is often seen as a highly speculative (Maisir) financial system due to its volatility, and the traditional financial system runs on Riba (interest), both of which are strictly prohibited in Islam.

But here’s where Islamic finance stands apart, even in the crypto space. It’s not just about accessibility; it’s about ethics. A financial system that’s fair, transparent, sustainable and free from interest, speculation, and excessive volatility. And that brings us to the big question: Is there really such a thing as an Islamic cryptocurrency?

Simply put, an Islamic cryptocurrency is a decentralised digital currency designed to comply with Islamic law (Sharia principles). Here are some key principles that define it:

  • Riba-Free: An Islamic cryptocurrency must avoid Riba (interest) to ensure fair and equitable wealth creation opportunities.
  • Backed by Real Assets: It should be backed by tangible assets like gold or real estate to maintain a more stable value.
  • Speculation-Free: It should not be speculative in nature, as excessive risk-taking (Gharar) is discouraged in Islam.
  • Ethical Considerations: It must promote ethical business practices and avoid involvement in haram (forbidden) activities such as gambling or funding unethical enterprises.

Amidst the chaos of fair and Sharia-compliant finance, Caiz emerges as a truly digital and ethical financial ecosystem, offering sustainable financial products that align with Islamic principles while ensuring blockchain security and transparency.

Within the Caiz ecosystem lies its native crypto token, Caiz Coin. For anyone wondering, ‘Is there an Islamic cryptocurrency?’ The answer is yes.

What Makes Caiz Truly an Islamic Cryptocurrency?

Caiz Coin is an Islamic cryptocurrency built on strong fundamentals and real-world assets rather than hype, making it a truly Islamic cryptocurrency. Currently, it functions as a payment token on the Ethereum blockchain. As part of its ecosystem, Caiz is developing its own native blockchain, designed to host its own token and various other Sharia-compliant protocols. 

The whole Caiz ecosystem is deeply rooted in Islamic values and robust blockchain protocols. But, what makes it different? Caiz brings the best of both worlds with its decentralized and centralized model, DeCe. That means transactions within the Caiz ecosystem are fully decentralized and transparent, but at the same time, a centralized layer governs the operations to ensure compliance.

This layer is powered by Caiz’s unique consensus mechanism, IFBA (Islamic Financial Blockchain Authority), which brings together verified scholars to make sure everything stays Fiqh-compliant. Unlike other crypto projects that just claim to be Islamic, Caiz goes beyond that. 

We at Caiz are committed to building a truly sustainable, long-term investment and wealth system backed by real, tangible assets. 

Morever, Caiz is a home to several blockchain yet sharia-focused products including the Caiz Stable which is potential islamic stable coins backed by real assets like Gold, Euro, Oil etc. Caiz Scan, an explorer that lets you analyse and explore any specific transactions, Caiz Earn which lets users earn the reward through ethical earning options within the Caiz Ecosystem and several other products. 

If you’re looking to step into crypto but have concerns about staying true to Islamic principles, look no further. Caiz is the Islamic cryptocurrency you can trust. It is fully secure, compliant and free from all prohibitions set by Sharia principles.

For more, you can visit – www.caiz.com 

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      [embedpress]https://www.youtube.com/watch?v=oCHzocLbXyY[/embedpress]

      IFBA Blockchain

      The Islamic Federated Byzantine Agreement (IFBA) has three main innovations over FBA, which provides optimal resilience in decision-making, improves transparency, increases the costs for malfunctioning and ill-behaving nodes, and ensures the blockchain is Fiqh compliant. These innovations ensure the nodes in the network of the CAIZchain can always reach consensus, meaning the blockchain will never stop running.

      The three innovations are:

      I. Introduction of Islamic Supervisory Nodes
      Special type of node which is run by Islamic scholars who are respected leaders in the community

      II. Verified, Public Nodes
      Individuals and organizations must pass identity and compliance verification in order to join the CAIZchain network.

      III. Caiz Consensus Protocol
      It is used by nodes in the network to ensure the validity and Fiqh compliance of statements or ledger updates.

      [embedpress]https://www.youtube.com/watch?v=825NHvXTJjI[/embedpress]

      DeCe by Caiz

      We developed and introduced a new financial architecture that combines the advantages of decentralized (De) and centralized (Ce) systems, giving rise to the distinctive DeCe acronym. Our mission is to secure a safe and inclusive environment that allows our community to capitalize on the opportunities provided by new digital systems. We can offer lower fees and a faster and more transparent framework based on high moral principles by balancing operations and instruments. Importantly, our users always maintain complete ownership and control over their data, deciding what to disclose and when.

      The benefits of our integrated system are self-evident: a more streamlined and efficient financial system that empowers both individuals and enterprises. But that's not all. CAIZ is at the forefront of this exciting transformation as the digital shift toward decentralized systems creates new resources and opportunities. We want to be equipped for the next stage of the global economy.

      [embedpress]https://www.youtube.com/watch?v=5GxItTvSekI[/embedpress]

      Our moral compass

      Our name, CAIZ (jāʾiz), represents our commitment to preserving the values of lawfulness, trustworthiness, and legitimacy in all that we do. We prioritize inclusion, justice, safety, and philanthropy by adhering to Fiqh-compliant financial principles. A Fiqh-compliant financial model is centered on principles such as the prohibition of Riba (interest), asset-backed transactions, and limits on funding Haram (banned) ventures. This approach is decisively different from traditional financial systems and provides countless benefits to investors.

      First and foremost, a Fiqh-compliant financial model protects investors and their assets. Unlike traditional interest rates, a Fiqh-compliant structure allows for equity participation, with investors sharing risks and gains. Likewise, a Fiqh-compliant system emphasizes equity and places itself on parity with investors. Activity screenings are built on clear principles that prioritize social utility rather than solely focusing on profit potential. A Fiqh-compliant financial model has a long-term and positive impact on society and appeals to investors who are increasingly looking for evidence of good intentions. This is possible through a drive for transparent cooperation and the avoidance of industries that can contribute to harm.

      Our ambition at CAIZ is to bring financial instruments to users who do not have access to traditional financial systems, while simultaneously providing a more simplified and congenial model to those who are already in the finance sector.

      CAIZchain

      CAIZchain with the governance API - The CAIZchain is a distributed database solution that functions as the host for CAIZcoin and all related APIs to facilitate decentralized, peer-to-peer transactions. The blockchain operates on a network of federated nodes that approve transactions, governed by a Fiqh-compliant governance layer. To ensure Fiqh compliance, the CAIZchain incorporates innovative methods, such as full KYC requirements for new users to access the ecosystem, and an IFBA protocol, which stands for this protocol offers a more robust consensus mechanism than existing protocols, in that it ensures compliance with Islamic transaction principles.

      CAIZapi

      CAIZapi is a SaaS solution that offers access to our blockchain ecosystem, enabling you to develop apps and leverage on existing denomination to transfer value and assets. Our blockchain ecosystem enables developers to build applications that interact with other users in the network. You can use our APIs to communicate with smart contracts, send transactions and access data from other users’ wallets. We will build a variety of tools that make it easy for developers to start building their own applications using CAIZapi. These include for example a library of code samples and tutorials that show how you can use our APIs in your next projects.

      CAIZwallet

      CAIZwallet - The CAIZwallet is a digital wallet that enables users to store CAIZcoin and various financial products in the CAIZ Ecosystem. It serves as the core element for a user's interaction with the CAIZchain and the financial products offered within the Caiz Ecosystem. Integrated into the CAIZapp, the CAIZwallet can be downloaded by users on their mobile devices. Prior to utilizing the CAIZwallet and CAIZapp, users must complete a Know-Your-Customer (KYC) process, which includes identity verification and several checks to ensure compliance with anti-money laundering regulations. Furthermore, the CAIZwallet offers additional features, such as confirming transactions that are compliant with Islamic law as well as allocating a percentage of funds to Zakat.

      CAIZapp

      The CAIZapp serves as the centerpiece of the extensive CAIZ Ecosystem. With the App, you can maintain complete control over your digital assets and access all the features of the ecosystem. Check your transaction history and stay up-to-date with the latest market value of Caiz. It can be downloaded onto a mobile phone or accessed via a webpage. The CAIZapp will be consistently enhanced with new features as they become available.
      Caiz
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