Blockchain and its most famous implementation, cryptocurrency, have been, across the finance world, one of the most talked about subjects of the last year. In the Islamic space, the questions have been whether crypto is Shari’ah-compliant and, if so, if it is useful in the Islamic finance world and broader Halal economy.
Earlier this year, the HelloGold foundation, based in Malaysia, launched GOLDX, a Shari’ah-compliant cryptcurrency certified by Amanie Advisors.
“GOLDX is an alternative to a USD hedge,” said Robin Lee, CEO of HelloGold, in a recent interview on CNBC. “GOLDX is taking gold into the cryptocurrency space by applying best practices from running SPDR GLD to create an arguably more trustworthy technical product. It’s the perfect stable-coin for sophisticated crypto investors who are looking to hedge their funds.”
If we’ve learned anything so far in 2018, however, one shouldn’t invest in a cryptocurrency purely because it is a cryptocurrency. In fact, It was recently reported on the website Dead Coins that more than 800 cryptocurrencies are now worth less than one US cent, even after $3.9 billion was taken in by ICOs in 2017 and $11.8 billion in 2018 thus far, according to Fast Company.
Bitcoin, the most famous cryptocurrency, has dropped 70 per cent from its peak at $20,000—a true bear market once again for the currency. Many in the space are looking at this fact, as well as the hundreds of ‘dead coins’ and saying that cryptocurrency was indeed a fad, that it is over, and that investors should steer clear.
Immediately writing off cryptocurrency, however, would be just as silly as investing in a cryptocurrency purely because it’s a cryptocurrency. The underlying technology, and the concept, are too powerful to ignore. In fact, what we’re really waiting for is the right cryptocurrency to come along. To make an analogy I made recently in a speech at a bitcoin forum for high-net worth individual investors, we’re still in the ‘Ask Jeeves’ phase, awaiting our Google. The question is, of course, what the Google will be.
When that happens, the power of cryptocurrency will once again be hard to deny, and though likely the conversations on cryptocurrencies use in Islamic finance are unresolved, the power that it could have in developing nations, including Muslim-majority nations, could be very strong. Islamic finance should remain on the cusp of this technology, and moves such as HelloGold are a good step in that direction.
This article provided by NewsEdge.