In Dubai cryptocurrencies are finding a meaningful role in today’s society, through the property sector. An area where they aim to offer solution is in the real estate sector. In Dubai, it is now possible to buy property using OneGram digital coin. What’s more interesting is that OneGram (cryptocurrency), meets the three basic trading requirements under Islamic finance.
MAG Lifestyle Development is the company behind the acceptance of digital coins in Dubai real estate. According to their CEO Mr. Talal Moafaq Al Gaddah, the move by MAG lifestyle Development to accept cryptocurrency, is an inspiration to customers about what MAG can offer to their clients. It is also an opportunity for their clients to benefit from the growing cryptocurrency market. In his view, acceptance of OneGram is in line with their leadership directives and a driver for sustainable growth.
Dubai’s Islamic finance compliant cryptocurrency, OneGram
Many of the cryptocurrencies that have attracted the attention of many investors by their abnormal returns have found it hard to be accepted in Dubai due to their failure to meet the threshold requirements under the Islamic finance. OneGram is fully compliant with the three tenets of Islamic trading; zero interest in issuance of money (OneGram), profit and loss sharing as part of reward scheme and negligible speculation of an asset.
A measure taken to hedge OneGram against erratic price movements is by hedging the digital coin using gold. One gram of gold is used to back up every OneGram coin. Since gold is a less volatile asset, this means that OneGram will be stable and could have “full capitalization.”
OneGram is expected to go live in June 2018, and incentives are in place for investors of this cryptocurrency. MAG properties investors will receive a 5% discount on the purchase of OneGram token which is anticipated to rise in price. For the first six to nine months, OneGram will remit to MAG properties 355 of the proceeds and the remaining 65% as at end of 2019.
According to Mr. Mohammad Ibraheem Khan the co-founder, OneGram, is their first real-world application which they consider it a mega milestone.
One Gram is expected to gain wide acceptance in the Middle East, compared to other cryptocurrencies such as Bitcoin which are struggling to find their way in the Middle East. This is articulated to their speculative and risky nature which doesn’t augur well with the Middle East investment culture.