The German company Caiz Development creates the Caizcoin digital token to promote financial products in the developing countries of the Islamic world.
According to a report published this month by blockchain explorer Chainalysis, countries in the MENA (Middle East and North Africa) region have become the fastest growing cryptocurrency market in the world. It accounted for 9.2% of global digital currency transactions over the past year, from July 2021 to June 2022.
The German fintech company Caiz Development, which opened a marketing office in the UAE, announced its intention to use the potential of the region and create an Islamic cryptocurrency by the first half of 2023.
That is, a closed ecosystem where all Sharia rules will be observed, Caiz CEO Joerg Hansen explained: “We consulted with Islamic scholars whether this is acceptable before deciding to develop a token.
Then we made every effort to create Caizcoin, a cryptocurrency that could be used in the Islamic world with all its restrictions, such as the prohibition of usury, knowing your counterparties, without anonymity or speculation.
According to Hansen, Caizcoin will operate in an ecosystem where there are “checks and balances” for all wallet holders. Only those who have passed the full authentication procedure will be able to log in to the system.
Operations with manifestations of human nature prohibited in Islam, such as craving for alcohol, drugs, gambling and pornography, will become impossible within the system. Caiz Development will set up its own blockchain and API to link it with financial service providers, banks and payment gateways.
“We are not creating a coin on the Ethereum blockchain. Instead, we forked the core technology of Stellar Chain in such a way as to build it from the ground up,” said Hansen. Earlier, the CoinMENA cryptocurrency exchange received a license from the Central Bank of Bahrain and was certified for compliance with Sharia law.
The license allows you to provide cryptocurrency services in the Kingdom of Bahrain, the United Arab Emirates (UAE), Saudi Arabia, Kuwait and Oman.