Caiz: Why are we Halal?

CAIZ MEDIUM
6 min readMay 19, 2023

Our Community Asked!

Here is our dedicated answer to your valid question!

Our recent collaboration with Khamzat Chimaev has sparked a significant discussion in the UFC community, raising questions about the compatibility of cryptocurrencies with Islamic finance principles. Interestingly, our analysis of fan responses on social media revealed that approximately 21% of the comments expressed concerns regarding the role of crypto in Islamic financial rulings. This motivated us to further explore and address this topic, aiming to provide clarity and understanding on this significant matter. In this article, we will explore the nine key reasons why Caiz is halal.

1. Sharia-Compliant Transactions on the Caiz Blockchain:

Caizcoin upholds its commitment to Sharia-compliant transactions on the Caiz Blockchain. By combining the Decentralized and Centralized financial worlds through its hybrid DeCe blockchain model, Caizcoin ensures Fiqh compliance and delivers a robust and efficient solution.

Derived from Stellar, the Caiz Blockchain utilizes the innovative Islamic Federated Byzantine Agreement (IFBA) system for consensus and incorporates a Fiqh-compliant governance layer. With a focus on regulatory compliance, Caizcoin’s ecosystem prioritizes the creation of high-quality financial products and services. By offering easy access to these services, Caizcoin aims to address the needs of the underserved market while adhering to local jurisdiction laws. Furthermore, it strives to provide a secure alternative to the current fiat financial system, particularly benefiting the billions of underserved and unbanked individuals in the Islamic world. Through the promotion of ethical financial behavior and wealth creation, Caizcoin envisions long-term economic empowerment for its users.

2. Scholar-Run Nodes for Enhanced Fiqh Compliance:

Caiz goes above and beyond in its commitment to Fiqh compliance by implementing a unique approach that involves scholars in the operation and governance of the network nodes. These distinguished scholars, who are recognized theological, spiritual, and public leaders, play a vital role in ensuring the highest standards of Islamic finance within the Caiz ecosystem. By running Islamic Supervisory Nodes, these scholars exemplify social, ethical, and Islamic accountability, setting a high standard for behavior and conduct. The involvement of scholars adds an extra layer of authenticity, credibility, and reassurance to the Caiz blockchain, providing users with the confidence that every aspect of the network is in alignment with Islamic principles. With the guidance and expertise of these knowledgeable scholars, Caiz strengthens its commitment to Fiqh compliance and reinforces its position as a trusted platform for Islamic-compliant cryptocurrency transactions.

3. Prohibition of Riba (Interest) in the Caiz Ecosystem:

At Caiz, we prioritize the adherence to Islamic principles, particularly when it comes to the prohibition of Riba. Unlike conventional financial systems that heavily rely on interest-based transactions, Caiz firmly upholds the values of Islamic finance by strictly prohibiting any form of Riba within its ecosystem. This commitment ensures that all products and services offered by Caiz are thoughtfully crafted to avoid any involvement in interest-based activities. By doing so, Caiz provides a trusted and ethical platform for Muslims seeking financial solutions that align with Islamic beliefs. We believe in fostering a system that promotes fairness, transparency, and the avoidance of exploitative practices, thus empowering individuals to engage in financial transactions with confidence and peace of mind.

>> CRYPTOCURRENCY and the Question of Halal-Haram

4. Robust KYC Verification Process for a Secure Environment:

In alignment with Islamic principles, we recognize the importance of maintaining a secure and trustworthy environment within our ecosystem. To combat potential risks posed by fraudsters and scammers, Caiz has implemented a robust Know Your Customer (KYC) verification process. This thorough verification procedure ensures that all individuals participating in the Caiz community are genuine and trustworthy. By upholding such stringent measures, Caiz not only safeguards the interests of its users but also reinforces its commitment to fostering an ethical and secure financial platform. We prioritize the protection of our users’ assets and personal information, enabling them to engage in transactions with confidence and peace of mind.

5. Automated Zakat Program for Charitable Contributions:

Caiz is deeply committed to upholding the principles of our religion, especially, the importance of Zakat. In line with this commitment, we have developed an automated Zakat program within our ecosystem. This innovative feature enables users to effortlessly calculate and distribute their Zakat contributions in adherence to Islamic guidelines. By incorporating Zakat into our platform, Caiz empowers individuals to fulfill their religious obligations and actively participate in charitable endeavors. This automated Zakat program promotes transparency, ease, and convenience, allowing users to make a meaningful impact on society and contribute to noble causes. With Caiz, users can seamlessly engage in the virtuous act of giving back to their community, ensuring that their financial actions align with their Islamic values.

6. Caiz Relief: Empowering Community-Driven Charity

Caiz Relief is a Caiz initiative that enables users to collectively decide on the distribution of Zakat and charity contributions through the Caiz-Wallet. This community-driven program emphasizes the importance of almsgiving and community involvement in charitable activities. Users actively participate by selecting charity programs listed on the Caiz Charity website and casting their votes, shaping the impact of their contributions and fostering transparency and inclusivity. Caiz Relief brings the ethos of Islamic finance to life, promoting compassion, empathy, and unity within the Caiz community for a brighter future.

7. Caiz Sukuk: Our Islamic Investment Model

Caiz Sukuk offers Fiqh-compliant investment products that empower our users to participate in ethically sound investment projects within the Caiz Ecosystem. By investing in a Sukuk, users become equity investors, sharing in the profits or losses of the projects. This Islamic investment model promotes financial inclusivity, aligning with the principles of Islamic finance and providing users with the opportunity to engage in ethical investment and contribute to sustainable growth. With Caiz Sukuk, investors can embrace the potential for both financial returns and social impact, fostering a community of responsible and principled investors.

8. Asset Protection: Caiz’ Coin Recovery System

Protecting digital assets is of utmost importance for cryptocurrency holders, especially in light of unforeseen events or technical setbacks. Caiz recognizes this concern and has introduced a reliable Coin Recovery System to prevent permanent loss of coins and assets. This innovative solution ensures that users can recover their investments in situations such as lost passwords or technical failures. With the Coin Recovery System in place, Caiz provides a secure and reassuring environment for users, reinforcing its commitment to safeguarding their valuable assets.

9. Islamic-Compliant Asset Distribution: Caiz’ Inheritance Plan

In Islamic finance, the fair distribution of assets after a person’s demise holds significant importance. Recognizing this, Caiz has incorporated a built-in inheritance plan directly into its blockchain infrastructure. Through the utilization of smart contract technology, Caiz enables individuals to establish precise instructions for the distribution of their digital assets, ensuring compliance with Islamic principles. This seamless and efficient process upholds the values of Islamic finance, promoting fairness and transparency in asset distribution.

Concluding Words:

While we acknowledge that Caiz is on the way to perfection, we are dedicated to upholding our Islamic finance principles. Our platform offers a secure and robust ecosystem, ensuring users can fully benefit from our services without concerns about cybersecurity attacks or identity theft. As a pioneering Islamic crypto platform, Caiz embraces the principles of Islamic finance and continuously improves to provide a transparent and ethical environment for cryptocurrency enthusiasts. We will continue to evolve and enhance our products and services, keeping up with advancements in Islamic finance and providing users with an ever-improving platform that adheres to the highest standards of integrity and compliance.

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CAIZ MEDIUM

CAIZ: Uniting tradition with fintech for ethical, secure & fiqh-compliant financial freedom.