Syariah Vision & Mission
Digital Gold Gram Account could potentially be considered Shariah-compliant due to several key aspects of its structure and operations, which align with Islamic finance principles:
Backing by Physical Assets: One of the core principles of Shariah compliance in financial products is the prohibition of Riba (usury) and excessive uncertainty (Gharar). The Digital Gold Gram is backed 100% by physical gold, ensuring each digital unit has a tangible asset basis. This tangible backing reduces uncertainty and speculativeness, aligning with the requirements for Islamic financial products.
Asset-based Transactions: In Islamic finance, transactions must be backed by real, physical assets, not just paper profits or speculative trading. Since the Digital Gold Grams are directly backed by gold and represent a real-world asset, transactions involving these digital tokens meet the asset-based transaction requirement.
Transparent and Ethical Governance: Smart contracts ensure that all transactions are transparent, recorded, and verifiable. This level of transparency and prevention of deceit or hidden conditions align with the Islamic principles of fair dealing and ethical governance.
No Interest (Riba) Features: The product does not involve paying or receiving interest, which is crucial to Shariah compliance. All gains through the Digital Gold Gram Account are based on actual asset trading and market dynamics, not through interest or other means prohibited by Islamic law.
Physical Asset Redemption: The ability to redeem Digital Gold Grams for physical gold also enhances compliance with Islamic principles, providing a direct link between digital tokens and physical assets.
Risk Sharing: In Islamic finance, risk sharing is encouraged over risk transfer. The Digital Gold Gram's smart contract governance ensures that risks associated with asset backing and liquidity provisions are shared among all participants, which is a principle of Islamic finance.
However, to definitively confirm its Shariah compliance, the Digital Gold Gram Account would need to be reviewed and certified by a qualified Shariah advisory board or a scholar specializing in Islamic finance. They would assess all aspects of the product against the comprehensive criteria of Shariah law to ensure full compliance.
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