DUBAI — Cryptocurrency traders are now turning to gold to draw investors from Muslim nations.
Reuters reports that many Gulf states don't consider cryptocurrencies like Bitcoin or Ethereum as compliant with Sharia law, which emphasizes economic activity based on physical assets.
To address this, Dubai startup OneGram has begun issuing a gold-backed cryptocurrency. Each unit has a corresponding gram of gold stored in a vault.
The company obtained approval from an Islamic advisory firm, and has so far issued tens of millions of dollars worth of the currency. Only 60 percent of the planned amount of coins remains to be sold.
A similar gold-backed crypto from HelloGold was released in Malaysia last October, after receiving permission from Islamic scholars in Kuala Lumpur.