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ShariaCoin NFTs Whitepaper

ShariaCoin Whitepaper

 

Date: 31 July 2021

Introduction:

ShariaCoin gold coin non-fungible tokens (NFTs) offer a unique and innovative way for investors to diversify their portfolio and gain exposure to the gold market in accordance with Islamic financial principles. Built on blockchain technology, ShariaCoin NFTs provide a secure, transparent, and easily accessible investment option that is compliant with sharia law.

Sharia law is a legal system derived from the principles of Islam and its holy texts, the Qur’an and the Hadith. One of the main principles of sharia is the prohibition of interest, or riba, in financial transactions. This means that traditional forms of investment, such as bank loans and certificates of deposit, are not permissible under sharia law.

Sharia-compliant investment options, also known as Islamic finance, offer an alternative way for Muslims to invest their money in a way that aligns with their religious beliefs. ShariaCoin NFTs offer an interest-free investment option that allows its NFT holders to profit from the value of gold without violating the prohibition of riba.

Benefits of ShariaCoin Gold Coin NFTs:

Security and transparency: ShariaCoin NFTs are built on blockchain technology, which allows for a verifiable record of ownership and resistance to tampering. This provides investors with greater security and peace of mind compared to traditional forms of investment.
Potential for growth in value: The value of ShariaCoin NFTs is expected to increase over time as demand for them grows, due to their limited supply on the blockchain. This could provide investors with significant returns on their investment.
Liquidity: ShariaCoin NFTs can be easily bought and sold on various online marketplaces, providing investors with greater flexibility and control over their investments.
Eco-friendliness: ShariaCoin NFTs do not require mining or the use of other resources, making them a more sustainable investment option for those concerned about the environment.
Compliance with sharia law: As an interest-free investment option, ShariaCoin NFTs are compliant with sharia law and allow investors to profit from the value of gold without violating the prohibition of riba.

The Sharia Gold Standard:

In addition to complying with sharia law, ShariaCoin NFTs adhere to the principles of the Sharia Gold Standard. The Sharia Gold Standard is a set of guidelines that govern the use of gold in Islamic finance. It requires that gold be physically held and not used as a means of speculation or leverage. The guidelines also specify that gold must be mined and traded in a responsible and ethical manner.

ShariaCoin NFTs meet the requirements of the Sharia Gold Standard by being backed by physically held gold and being traded in a responsible and ethical manner. This adds an additional layer of assurance for investors who are concerned about the ethical and sharia-compliant nature of their investments.

Principals of Sharia Finance:

Sharia finance is based on a set of principles that guide the way financial transactions and investments are carried out in accordance with sharia law. These principles include:

 

      • Prohibition of riba: As mentioned previously, riba is the prohibition of interest in financial transactions. This means that traditional forms of investment, such as bank loans and certificates of deposit, are not permitted in sharia finance.

      • Prohibition of maysir: Maysir refers to gambling and speculation. Sharia finance prohibits investments that involve excessive risk or uncertainty, as they may lead to unethical or harmful outcomes.

      • Prohibition of haram activities: Haram activities are those that are considered sinful or unethical in Islam, such as gambling, alcohol production, and pork production. Sharia finance prohibits investments in companies that engage in these activities.

      • Requirement for a real economic activity: Investments in sharia finance must be tied to a real economic activity and must generate a tangible benefit or profit.

      • Requirement for shared risk and profit: In sharia finance, both the investor and the recipient of the investment must share in the risk and profit of the investment. This means that investments cannot be structured in a way that guarantees a fixed return for the investor.

      • Requirement for transparency and fairness: Sharia finance requires transparency and fairness in financial transactions and investments. This means that all parties involved must have a clear understanding of the terms of the investment and the potential risks and rewards.

    • By adhering to these principles, ShariaCoin NFTs offer investors an opportunity to invest in a way that is compliant with sharia law and aligns with their religious beliefs.

 

 

 

Conclusion:

ShariaCoin Gold Coin NFTs offer a secure, transparent, and eco-friendly investment option with the potential for growth in value that is compliant with sharia law and the principles of the Sharia Gold Standard. Their liquidity and accessibility make them an appealing option for investors looking to diversify their portfolio and gain exposure to the gold market in a way that aligns with their religious beliefs.

References:

“What Are Non-Fungible Tokens (NFTs) and How Do They Work?” (2021, May 17). Retrieved from https://www.investopedia.com/terms/n/non-fungible-token-nft.asp
“The Benefits of Investing in Gold” (2021, November 9). Retrieved from https://www.investopedia.com/articles/investing/022416/benefits-investing-gold.asp
“The Advantages and Disadvantages of Investing in Gold” (2021, January 21). Retrieved from https://www.thebalance.com/advantages-and-disadvantages-of-investing-in-gold-2388525
“Islamic Finance: A Beginner’s Guide” (2021, January 13). Retrieved from https://www.investopedia.com/terms/i/islamic-finance.asp
“Prohibitions in Islamic Finance” (n.d.). Retrieved from https://www.islamic-finance.com/prohibitions-in-islamic-finance/
“The Sharia Gold Standard” (n.d.). Retrieved from http://www.shariagoldstandard.org/