OneGram

Cover Story: #Disrupting Islamic finance

For many years, the global Islamic finance has been seen as a laggard in digital innovation, but now Islamic finance players are catching up with their conventional peers. According to Zeeshan Uppal, co-founder of crowdfunding company Yielders, fintech has opened up opportunities for Islamic finance to catch up because it allows scalability, which is in line with shariah law. Ibrahim Mohammed, the founder of OneGram, says that blockchain technology can create digital banks or P2P lending platforms that adhere to Islamic principles, and many other asset classes can be made shariah-compliant. Umar Munshi, founder of EthisCrowd, finds the slow innovation in Islamic finance perplexing as there is an urgent need for financial inclusivity. He expects to see more players in the takafultech, crowdfunding and P2P financing, payment and remittance, and smart contract space next year. According to EY’s Banking in Emerging Markets GCC FinTech Play 2017 report, Fintech can propel Islamic banks into the mainstream space in 20 promising markets by 2021, up from five markets today, and effectively add 150 million new Islamic banking customers.

Shariah-compliant, gold-backed #digi-coins could change Islamic finance

The launch of the first-ever Islamic finance-compatible cryptocurrency could be a game changer for the entire Islamic banking industry. OneGram calls itself the world’s first Shariah-compliant cryptocurrency whose value is backed by actual gold reserves. The company started selling a total stock of 12.4mn digital tokens on May 21 that are backed by one gram of gold each. The Initial Coin Offering programme aims to raise around $500mn. At its sister company GoldGuard, OneGram will store the physical gold in a vault inside the Dubai Airport Free Zone. OneGram’s founder and CEO, Mohammed Ibrahim Khan, says he felt inspired by Bitcoin whose use is subdued in the Arab world. He added that OneGram has Shariah scholars on its board who ensure that the company is fully compliant with Islamic finance requirements. According to Mohammed, large-scale funds of more than $200mn have been committed by Dubai-based Tabarak Investment Capital. The sale of the OneGram coins is going on until September 22 this year and no more coins will be ever issued from then.

Sharia-compliant, gold-backed digital #currency OneGram’s ICO kicks off

OneGram, a Sharia-compliant, gold-backed digital currency, has raised $461,497.59 so far in its OGC token crowdsale. The crowdsale will run for a total of 120 days, in which OneGram seeks to raise $500 million by selling over 12 million OGC tokens. For participating, investors are required to create an account on GoldGuard and purchase gold there. According to the official release, once the cryptocurrency is deployed on the blockchain, there will be a 1% transaction fee. 70% of transaction fees are reinvested to buy more gold, increasing the amount of gold that backs each token. 25% is used for development and operations, 2.5% is used for charity donations, and 2.5% is used to reward the POS miners. Sharia compliance is a key differentiator for the OGC token, the founders of OGC developed the solution so it would fit within the parameters of shariah law.

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