Shari'ah-Compliant Crypto Gold: Could Islam Be Preparing For A New World Reserve Currency?
by Tyler Durden
May 26, 2017 8:30 PM
101
SHARES
Twitter Facebook Reddit
Authored by Shannara Johnson via HardAssetAlliance.com,
It all started pretty harmlessly: in December 2016, after about 12 months of deliberations, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and the World Gold Council announced a new “Shari’ah Standard on Gold.”
The new standard was celebrated as a potentially big boost for global gold demand as it would give more than 2 billion Muslims in the world access to gold-based financial products that were previously forbidden to them.
That included vaulted gold, gold accumulation plans, gold certificates, gold-backed ETFs like GLD, and gold mining stocks.
Under Shari’ah law, physical gold was considered a “ribawi item,” which means it could only be used as a currency and worn as jewelry, but it couldn’t be traded for speculation or future value. However, Muslim investors were well aware that the $1.8 trillion Islamic finance business was missing out on important opportunities.
Under the new standard, Shari’ah-compliance is guaranteed as long as physical gold is the underlying asset.
And we didn’t have long to wait for a brand-new financial product coming from the Islamic world that combines the popularity of Bitcoin with the timeless value of physical gold: OneGram, a gold-backed, fully Shari’ah-compliant crypto currency.
The new currency was announced on May 4 at the Ritz Carlton, Dubai International Financial Center—with the official ICO (Initial Coin Offering) following only 17 days later.
The total number of OGCs is fixed and won’t change after the ICO. The digital transaction fees (minus admin costs) will be reinvested to buy more gold.
“Therefore,” states the website, “the amount of gold backing each OGC will increase with time.”
Plus, of course, a rising gold price and the growing acceptance of OneGram in the market are also poised to pump up its value.
Gold and crypto-currency experts are already speculating about the implications of the launch. A recent CoinDesk review stated:
Bitcoin is often referred to as a “good” money because of its limited supply, relative fungibility and ease of exchange. If gold can also start to satisfy those requirements, a seismic shift from fiat to digital could be easier to “sell”—the public is predisposed to trust gold, certainly more so than cryptography.
It could also open the door to the creation of a new global currency as an alternative to the dollar, something that Russia and China are rumored to be looking at.
[Emphasis mine.]
We sure do live in interesting times - and it is not all that far-fetched to think that OneGram, or another gold-backed crypto currency like it, could be a stealthy way to introduce a new global gold standard.
http://www.zerohedge.com/news/2017-05-26/shariah-compliant-crypto-gold-could-islam-be-preparing-new-world-reserve-currency
by Tyler Durden
May 26, 2017 8:30 PM
101
SHARES
Twitter Facebook Reddit
Authored by Shannara Johnson via HardAssetAlliance.com,
It all started pretty harmlessly: in December 2016, after about 12 months of deliberations, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and the World Gold Council announced a new “Shari’ah Standard on Gold.”
The new standard was celebrated as a potentially big boost for global gold demand as it would give more than 2 billion Muslims in the world access to gold-based financial products that were previously forbidden to them.
That included vaulted gold, gold accumulation plans, gold certificates, gold-backed ETFs like GLD, and gold mining stocks.
Under Shari’ah law, physical gold was considered a “ribawi item,” which means it could only be used as a currency and worn as jewelry, but it couldn’t be traded for speculation or future value. However, Muslim investors were well aware that the $1.8 trillion Islamic finance business was missing out on important opportunities.
Under the new standard, Shari’ah-compliance is guaranteed as long as physical gold is the underlying asset.
And we didn’t have long to wait for a brand-new financial product coming from the Islamic world that combines the popularity of Bitcoin with the timeless value of physical gold: OneGram, a gold-backed, fully Shari’ah-compliant crypto currency.
The new currency was announced on May 4 at the Ritz Carlton, Dubai International Financial Center—with the official ICO (Initial Coin Offering) following only 17 days later.
According to OneGram’s website, initially each OneGram coin (OGC) is backed by one gram of gold and can be used for digital payments, just like Bitcoin.“In recent years, the Middle East has seen incredible growth in fintech innovations including digital tokens and smart contracts,” said Ibrahim Mohammed, the founder and CEO of OneGram, in his first press release. “With OneGram, we’re excited to provide an opportunity for investors who care about Islamic financial markets and the security of commodity-backed investments to benefit from rapid technological advances in the blockchain industry.”
The total number of OGCs is fixed and won’t change after the ICO. The digital transaction fees (minus admin costs) will be reinvested to buy more gold.
“Therefore,” states the website, “the amount of gold backing each OGC will increase with time.”
Plus, of course, a rising gold price and the growing acceptance of OneGram in the market are also poised to pump up its value.
Gold and crypto-currency experts are already speculating about the implications of the launch. A recent CoinDesk review stated:
Bitcoin is often referred to as a “good” money because of its limited supply, relative fungibility and ease of exchange. If gold can also start to satisfy those requirements, a seismic shift from fiat to digital could be easier to “sell”—the public is predisposed to trust gold, certainly more so than cryptography.
It could also open the door to the creation of a new global currency as an alternative to the dollar, something that Russia and China are rumored to be looking at.
[Emphasis mine.]
We sure do live in interesting times - and it is not all that far-fetched to think that OneGram, or another gold-backed crypto currency like it, could be a stealthy way to introduce a new global gold standard.
http://www.zerohedge.com/news/2017-05-26/shariah-compliant-crypto-gold-could-islam-be-preparing-new-world-reserve-currency
Today at 6:29 am by Rocky
» Al-Sudani arrives in Riyadh to participate in the World Economic Forum
Today at 6:27 am by Rocky
» An Arab call to the countries neighboring Iraq regarding the share of water
Today at 6:26 am by Rocky
» IMF: Poor productivity is responsible for 50% of the decline in economic growth
Today at 6:20 am by Rocky
» The President of the Republic stresses to Barzani the importance of focusing on construction, recons
Today at 6:19 am by Rocky
» Will Iran lose the Iraqi market? 20 million dollars is threatened with loss
Today at 6:18 am by Rocky
» Parliamentary Economy: Parliament will extend the legislative term to approve the budget
Today at 6:13 am by Rocky
» The price of the dollar is close to 145 thousand dinars؛ how much is $100 worth of transactions؟
Today at 6:13 am by wciappetta
» A factory for producing electric cars
Today at 6:12 am by Rocky
» Prime Minister: We have launched strategies to improve the conditions of workers
Today at 6:10 am by Rocky
» Economic prospects from America to Türkiye
Today at 6:09 am by Rocky
» Al-Rayes: The path of development is the first gateway to sustainable economic advancement
Today at 6:08 am by Rocky
» Days after announcing the connection with Jordan, an almost complete absence of electricity in Ramad
Today at 6:06 am by Rocky
» A Kurdistan delegation meets with the Ministry of Finance in Baghdad to discuss “revenues and implem
Today at 6:05 am by Rocky
» Parliamentary Economy reviews files and the importance of Sudanese’s upcoming visit to Saudi Arabia
Today at 5:59 am by Rocky
» Al-Maliki talks about postponing the Kurdistan Parliament elections and says that salary transfers w
Today at 5:54 am by Rocky
» The President of the Republic and Barzani discuss the results of Sudanese’s visit to the United Stat
Today at 5:53 am by Rocky
» The Ministry of Finance is "dizzy"... An expert points out a "lapse" in the budget schedules: Februa
Today at 5:49 am by Rocky
» Sudanese Advisor: The 2024 budget has entered into force... and there is no need to send its schedul
Today at 5:43 am by Rocky
» The Iraqi dinar is recovering against the US dollar in local markets
Today at 5:42 am by Rocky
» Iraq.. The claim that OPEC’s decisions affect oil derivatives only and not crude is “inaccurate”
Today at 5:39 am by Rocky
» Al-Bawi: Erdogan failed in his promises to his people and seeks to plunge Iraq into its conflict wit
Today at 5:37 am by Rocky
» The Sudanese and his battle against corruption.. Where is the fault with the government or with the
Today at 5:36 am by Rocky
» Amnesty International criticizes Iraq's implementation of 13 death sentences
Today at 5:34 am by Rocky
» The ambassador is very angry with Parliament: The homosexuality law obstructs the government and har
Today at 5:33 am by Rocky
» Al-Mandalawi: There is no place for homosexuality in the Iraq of the prophets and saints, and that i
Today at 5:32 am by Rocky
» Al-Sudani receives the President of the University: Towards the strength and status of the Arab syst
Today at 5:31 am by Rocky
» Ayed Al-Hilali: All leaders are discussing “the finer details of Sudanese” tonight, and Barzani join
Today at 5:30 am by Rocky
» He announced the reception of offers from three alliances from international companies for the Baghd
Today at 5:28 am by Rocky
» During his meeting with the head of the Iraqi Journalists Syndicate... Al-Amiri stresses the importa
Today at 5:26 am by Rocky
» To address the dollar exchange rate... Mazhar Muhammad explains the risks of floating the Iraqi dina
Today at 5:25 am by Rocky
» During the launch of the Arab Labor Conference in its 50th session in Baghdad... Al-Sudani: We launc
Today at 5:24 am by Rocky
» Saudi Arabia announces an increase in direct flights with Iraq
Today at 5:23 am by Rocky
» Resources: Government measures have contributed to improving the water situation in Iraq
Today at 5:22 am by Rocky
» Al-Sadr: The voice of American universities calling for an end to Zionist terrorism is our voice
Today at 5:21 am by Rocky
» International organization: 50% of displaced Iraqis lack official documents
Today at 5:20 am by Rocky
» Al-Sudani: The path of development will provide many job opportunities
Today at 5:19 am by Rocky
» Parliament Finance: The necessity of converting tax and customs revenues to digital processing
Today at 5:18 am by Rocky
» Al-Sudani announces that clues have been found to uncover those involved in the Kormor bombing
Today at 5:16 am by Rocky
» The start of the work of the Fourth Baghdad International Water Conference
Today at 5:09 am by Rocky
» The Council of Ministers will suspend official working hours next Wednesday
Today at 5:07 am by Rocky
» An almost complete outage of water and electricity in western Anbar
Today at 5:06 am by Rocky
» Parliamentary expectations of extending the legislative term to approve the budget
Today at 5:00 am by Rocky
» Education: The cost of participating in the electronic school will amount to 200 thousand dinars
Today at 4:59 am by Rocky
» Al-Sudani arrives in Riyadh to participate in the World Economic Forum
Today at 4:58 am by Rocky
» A newspaper reveals a dark world that brings together bloggers and politicians
Today at 4:57 am by Rocky
» Al-Marsoumi: The bombing of the Kormor field undermined efforts to achieve self-sufficiency in gas
Today at 4:55 am by Rocky
» utube MM&C 4/24/24 Support - USA- Turkey - Timing- Currency Value - Tabled
Yesterday at 3:18 pm by Rocky
» utube MM&C 4/26/24 Iraqi Dinar - US Treasury Exchange Rates- Focus - Banking Partnerships - Rate C
Yesterday at 3:17 pm by Rocky
» Parliamentary efforts to transform Iraq into a global market for transferring Internet capacities
Yesterday at 3:07 pm by Rocky
» A parliamentary committee that enriches the political forces: Stop plundering Iraq’s wealth and work
Yesterday at 2:56 pm by Rocky
» Politician: Salem Al-Issawi is the most likely to assume the presidency of Parliament
Yesterday at 2:55 pm by Rocky
» Al-Sudani: The world today is witnessing crises whose impact has been reflected in the global econo
Yesterday at 10:50 am by Rocky
» The Federal Court responds to an inquiry by Al-Sudani regarding the powers of the provincial council
Yesterday at 10:40 am by Rocky
» Among them are the Iraqis... a list of the most sought-after immigrants to America
Yesterday at 10:38 am by Rocky
» An expert talks about the "biggest barrier" and the positives of merging Iraqi and Arab banks
Yesterday at 10:29 am by Rocky
» The House of Representatives adjourns its session
Yesterday at 10:24 am by Rocky
» Parliamentary demands to expedite the legislation of the Eid al-Ghadir holiday law (documents)
Yesterday at 10:23 am by Rocky
» Parliament adds the paragraph “Electing the Speaker of the House of Representatives” to its agenda
Yesterday at 10:21 am by Rocky
» Alsumaria publishes the text of the law against prostitution and homosexuality
Yesterday at 10:20 am by Rocky
» A parliamentarian reveals the reason for the failure of the Speaker of Parliament to pass during tod
Yesterday at 10:19 am by Rocky
» Al-Sudani: The government has launched many strategies and initiatives that will improve the reality
Yesterday at 9:42 am by Rocky
» International Business: Iraq has made progress in supporting businesses through investment and priva
Yesterday at 9:33 am by Rocky
» Association of Banks: Iraq is witnessing great development in the transition to electronic governmen
Yesterday at 9:25 am by Rocky
» The House of Representatives votes to add an item to its agenda (election of the Speaker of the Hous
Yesterday at 9:22 am by Rocky
» Parliamentary integrity: Combating corruption requires parliamentary legislation
Yesterday at 9:15 am by Rocky
» Al-Karaawi: America is trying to restrict Iraq
Yesterday at 9:13 am by Rocky
» The State of Law coalition moves to form the local government in Diyala
Yesterday at 9:12 am by Rocky
» The Sudanese and his battle against corruption.. Where is the fault with the government or with the
Yesterday at 9:11 am by Rocky
» Prime Minister's Advisor: We will see the dollar fall on the black market soon
Yesterday at 9:09 am by Rocky
» The Sunni blocs are resolute. The presidency of the Council is ours, away from Al-Halbousi
Yesterday at 9:08 am by Rocky
» Al-Sudani discusses with a workers’ organization his government’s steps in this field
Yesterday at 8:58 am by Rocky
» Parliament holds its session in the presence of 170 deputies
Yesterday at 8:57 am by Rocky
» In the presence of Nechirvan Barzani and Al-Sudani... the State Administration Coalition holds an “i
Yesterday at 8:55 am by Rocky
» The UAE company ADNOC resorts to Iraqi oil. Find out the reasons
Yesterday at 8:53 am by Rocky
» The Iraqi Parliament votes to add an item to elect a president to its agenda
Yesterday at 8:52 am by Rocky
» The Federal Court responds to an inquiry by Al-Sudani regarding the powers of the provincial council
Yesterday at 8:51 am by Rocky
» Al-Sudani: It is necessary to attract women to work as a productive energy that cannot be disrupted
Yesterday at 8:47 am by Rocky
» Zebari regarding targeting the Kormor field: a systematic attack on the economy of Kurdistan
Yesterday at 8:46 am by Rocky
» Saudi Arabia tops, and this is Iraq's rank... a list of major suppliers of crude oil to South Korea
Yesterday at 8:45 am by Rocky
» With a value of 125 million dollars.. Iraq is at the forefront of countries importing Iranian textil
Yesterday at 8:44 am by Rocky
» More than a billion dollars in sales from the Iraqi Central Bank within a week
Yesterday at 8:43 am by Rocky
» Al-Sudani stresses the need for the expertise of the International Labor Organization to legislate a
Yesterday at 8:29 am by Rocky
» Including the return of 21 wanted persons.. The Iraq Money Recovery Fund counts its achievements in
Yesterday at 8:27 am by Rocky
» The path to development is the criterion between true patriotism and political clowning.
Yesterday at 8:25 am by Rocky
» The file of the Presidency of Parliament is on the state administration table... this evening
Yesterday at 8:22 am by Rocky
» Director General of the International Labor Organization: Many challenges in the world of work and t
Yesterday at 8:20 am by Rocky
» Al-Sudani: The world is witnessing crises that reflect negatively on the Arab and international peop
Yesterday at 8:11 am by Rocky
» Prime Minister: Our government has provided great support for the success of the activities, program
Yesterday at 8:08 am by Rocky
» Al-Asadi: Iraq places the social protection file among its priorities
Yesterday at 8:07 am by Rocky
» Al-Sudani: Iraq is one of the first countries in the region to join the International Labor Organiza
Yesterday at 8:05 am by Rocky
» In the presence of Al-Sudani and Barzani, the State Administration Coalition holds an “important” me
Yesterday at 8:03 am by Rocky
» Appreciating the presence of Al-Sudani... Director General of the Arab Labor Organization: Here from
Yesterday at 6:29 am by Rocky
» Prime Minister: Our government has provided great support for the success of the activities, program
Yesterday at 6:28 am by Rocky
» Al-Sudani: The world is witnessing crises that reflect negatively on the Arab and international peop
Yesterday at 6:24 am by Rocky
» The Parliamentary Development Institute organizes a workshop on the political role of the representa
Yesterday at 6:22 am by Rocky
» With Arab and international participation. Tomorrow will be the start of the Fourth Baghdad Internat
Yesterday at 6:21 am by Rocky
» OPEC Secretary General: The end of oil is not on the horizon
Yesterday at 6:19 am by Rocky
» Closing a number of unlicensed offices and companies south of Baghdad
Yesterday at 6:16 am by Rocky