Framing a blockchain-based value transfer solution to conform with Islamic Laws
Value is a concept. It means different things to people depending, sometimes on social concurrence.
With increasing globalization, innovation, and calls for the status quo's change, there ought to be a reconsideration of what value means for clarity.
This is quintessential, especially when there is a convergence of morality, religion, and finance. Depending on Islamic teachings, the eventual adoption of technology can be dealt a blow if classified as illicit, out of sync with acceptable religious and customary practices.
The Definition of Value in Islamic Finance is changing
A case in point is the evolution of what's widely accepted as money and a medium of exchange. In traditional finance, money is tangible, serving as a unit of account, a medium of exchange, and sometimes a store of value.
In one way or another--and given the widespread use of fiat currency, following the laid down religious and regulatory laws, traditional money has Mayl (inclination)—and thus asset-backed and valuable.
However, the central contention is what eventually correctly classifies a network Islam-compliant is congruence with Islamic teachings. These laws forbid followers from involving themselves in illicit activities.
Crypto is an evolution and is, most importantly, a new concept. Accordingly, the interpretation of what's Islam compliant is also evolving. This must be the case considering how sensitive compliance is for the over two billion people, hesitant to jump in and trial a system if there is no clarity from Islamic scholars and experts.
Towards this end, the rollout of blockchains and crypto projects complying with Islamic laws of fairness, transparency, and compassion while still integrating modern values of global reach, open-mindedness, and independence goes a long way in promoting financial inclusion.
The Caizchain
The Caizchain is a project built from the ground up looking to serve billions of people across the board in line with Islamic practices governing finance, especially in alignment with Islamic definition of money.
In that regard, the Caizchain is launching its native currency, CAIZ that is Islam-compliant, riding on the blockchain's transparency and fairness.
The platform is based on a network of legal principles that bind with Islamic teachings for a suitable means of value transfer—transparency and fairness matter. The success of Bitcoin is primarily linked with how the network has helped millions of people send value across the world in a non-exploitative manner.
Through the use of blockchain, there is cost reduction and fairness. Aligning themselves with Bitcoin rails, the Caizchain builds on the same independence-oriented view, seeking to provide value for billions in the Middle East, Maghreb countries and across the globe, allowing them to move value securely and reliably while complying with Know-Your-Customer (KYC) rules.
Focus on Conforming to Islam Rules
A blend of regulatory and compliance with Islamic rules governing finance means CAIZ holders can cheaply and instantaneously move value, participate in digital banking, invest in DeFi, enjoy superior protection, or even connect to third parties via Caizchain API.
The result, therefore, is new businesses and opportunities where the blockchain magnifies the importance of adhering to Islamic teachings of eliminating speculation, uncertainty, and interest.
Because of this emphasis and structures to prevent divergence, people can participate in decentralized finance (DeFi). As a result, they can earn revenue from protocols screened using Islamic Finance rules and are determined to be earning income in a Islam-compliant manner.
Typically, the absence of blockchain and smart contracts would drastically have raised administrative costs because of redundancies and legal obligations. However, with new technology, this is changing. The Caizchain, even with strict adherence to Islamic laws, is competitive, tech-savvy, forward-looking, and modern without sacrificing what matters.
