Gold-Backed Cryptocurrency Issued To Lure Investors In UAE

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OneGram, a startup based in Dubai which was founded last year is issuing a digital currency which is backed by gold in an effort to convince investors who profess the Muslim faith that they can invest in virtual coins with a clean conscience.

Though cryptocurrencies have extended into Southeast Asia and the Gulf, which are considered the main Islamic finance centers, virtual coins have an uneasy relationship with Islam. Besides banning interest payments principles of Sharia place an emphasis on real economic activity that is based on tangible or physical assets meaning pure monetary speculation is frowned upon.

In order to limit speculation each unit of the OneGram virtual currency is backed by a minimum of one gram of gold which is kept in a vault. The virtual currency has already been issued, though 60% is yet to be bought but OneGram expects to have issued them all prior to having them listed on exchanges before the end of next month.

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