Islamic crypto safer and reliable: study

Asset-backed structures of such digital assets reduce volatility, speculation

LAHORE:

Islamic cryptocurrencies such as X8X Token and OneGram are emerging globally as safer and more reliable investments than traditional safe-haven assets like gold, government bonds and popular cryptocurrencies such as bitcoin and ethereum, says a new study.

By combining Shariah compliance, asset backing and blockchain transparency, these digital assets are redefining safe-haven investing in volatile global markets, it said.

According to findings of the study conducted by the ICMA Research and Publications Department, blockchain and digital currencies are transforming finance worldwide. The global cryptocurrency market surpassed $1 trillion in 2023, with over 420 million people owning cryptocurrency, highlighting its growing adoption.

Meanwhile, the global Islamic finance industry has grown to over $3 trillion, reflecting strong demand for Shariah-compliant financial instruments.

Despite the massive investment, mainstream cryptocurrencies like bitcoin and ethereum remain highly volatile and speculative, exposing investors to significant risks. Islamic finance principles prohibit interest, excessive uncertainty and gambling, making stability a critical factor. Islamic cryptocurrencies address these risks while offering ethical, tech-driven investment solutions.

According to the study, the X8X Token provides stability through a basket-backed reserve of fiat currencies and gold. Its smart algorithm continuously monitors reserves and adjusts token supply to maintain value. This self-regulating ecosystem minimises speculation and ensures investor confidence.