Chair of Ethics and Financial Norms
Université Paris 1 Panthéon Sorbonne – King Abdulaziz University
OneGram: The First Physically Backed By
Gold and Shariah Compliant Cryptocurrency
Wednesday 10 January, 2018 (23/04/1439H)
Mr. Ibrahim Mohammad
About eight years ago, a pseudonymous cryptographer known as Satoshi Nakamoto introduced Bitcoin as a digital analog to gold: Limited in supply, but secured by modern cryptography, and made for the internet age. Following Satoshi’s footsteps, many tried to improve on Satoshi’s original vision, and thousands of alternative cryptocurrencies were born.
Despite significant recent developments and innovation, the market for cryptocurrencies remains very niche. Cryptocurrencies still have shortcomings that discourage mainstream use, in particular high volatility and barriers to entry. Its also worth noting that existing cryptocurrencies have not been designed with Islamic markets in mind. While the 1.6 billion Muslims make up over 23 percent of the world population, many Muslims simply can’t use cryptocurrencies because of their restricted legal status and high barriers to entry in many countries in the Islamic world.
OneGram aims to solve these issues by using blockchain technology to create a new kind of cryptocurrency, where each coin is backed by one gram of gold at launch.
In addition, each transaction of OneGram Coin (OGC) generates a small transaction fee which is reinvested in more gold (net of admin costs), thus increasing the amount of gold that backs each OneGram. Therefore, each OGC increases in real value over time, making OneGram unique among cryptocurrencies.