OneGram, a gold-backed cryptocurrency where each coin is backed by one gram of gold, first launched with the desire to bridge the commodities-cryptocurrency disparity. Now, the OneGram Group of companies wants to bridge the Islam-cryptocurrency gap. The group plans to list its own sharia-compliant coin, reports Reuters.
The news comes just days after launching the cryptocurrency in South Africa.
Stability of price
One unit of the token corresponds to at least a gram of gold held in a physical vault. The idea is to avoid the element of speculation which sharia law proscribes.
In addition, the OneGram team emphasizes that the linkage to gold is strategic. Gold is the oldest currency and the most stable through time. Therefore, it provides a stable floor price for the coin unlike other coins that wallow in price volatility. In a word, the price of one unit of OneGram cannot fall below the spot price of one gram of gold.
Volatility of digital assets prices facilitates Islam-cryptocurrency gap
The coin has initial operations in Dubai and other countries most of them predominantly Islamic. According to Ibrahim Mohammed, Founder of OneGram, the coin wants to incorporate individuals who profess Islam into the cryptocurrency space. He says:
“Our approach to OneGram was to create a bridge between commodities and crypto using physical gold and package it together using innovative blockchain technology. This way we are able to give our users the best of both worlds and provide a degree of certainty around the notoriously fickle cryptocurrency market.”
Furthermore, the founder believes that the South African investors are ready for the cryptocurrency market. Particularly, the coin will target the most risk averse South Africans. This is for the reason that OneGram is without the risks that underlie most of the other coins available on the market.
“OneGram presents investors in Africa with a unique way to join the crypto-currency market with none of the risks typically associated with it. Driven by gold, OneGram is a powerful digital token that combines the world’s most influential asset with the means to embrace digital innovation,” notes Mohammed.
OneGram, in upholding sharia law, sets aside 25% of their wealth for charitable causes.