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Colorado Church group tokenizes $2.5M chapel

This may be the first tokenized church in the world.

A network of affiliated church groups called the “Colorado House of Prayer” has tokenized its main chapel in an effort to purchase the $2.5 million building. 

The pastor heading the project, Blake Bush, says he was compelled by a higher power to use blockchain technology as a tool for advancing the group’s mission.

According to a report from Forbes, Bush’s congregation and other church groups had been renting the building from its owner, a local businessperson who also owns a car dealership.

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Islam and crypto: How digital assets can comply with Islamic financial law

A look at cryptocurrency’s role in the world of Islamic banking and finance.

Islamic banking and finance is a system based on the principles of Shariah, or Islamic law, which, among many other things, prohibits the charging or paying of interest on loans and emphasizes ethical and equitable financial transactions. 

One of the more notable traits of Islamic banking is its prohibition on charging or paying interest on loans, which is the basis of conventional banking.

Instead, Islamic finance is based on profit and loss-sharing agreements between the lender and the borrower. The lender shares the investment risk with the borrower, and both parties share the profits or losses.

Sharia law permits investment in intangible goods like stocks, bonds and digital assets like cryptocurrencies. Sharia-compliant assets do not have to be backed by physical goods as long as they have real utility. Additionally, Sharia only permits investments in businesses and projects that are not harmful to society (so no gambling, alcohol or tobacco).

Transparency is essential to Islamic finance, and all financial transactions must be disclosed to all parties involved. Islamic finance is also supervised by Shariah boards, which comprise Islamic scholars who ensure that all financial transactions comply with the principles of Shariah.

Islamic finance offers several products and services, including mudarabah, musharakah, murabaha, ijara, and sukuk.

What makes a Sharia-compliant cryptocurrency?

To develop a compliant cryptocurrency, a team of experts in Islamic finance and technology — including Islamic scholars, financial experts and developers — come together to determine the design and features of the cryptocurrency.

This team will ensure the coin is based on a profit-and-loss sharing system rather than interest-based lending. This means that investors share in the profits and losses of the business venture rather than receiving a fixed rate of return on their investment.

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Once the cryptocurrency is ready for issuance, a Shariah supervisory board must review and certify the coin before Muslim investors can start using it. This certification process involves a detailed review of the cryptocurrency’s features and design.

One example of a Sharia-compliant digital asset is Islamic Coin (ISLM), built on the Haqq Network blockchain. In June 2022, Islamic Coin gained a Fatwa (a ruling by Islamic authority) for its Sharia compliance.

Like many cryptocurrencies, it follows a deflationary model, preventing new coins from being created on a whim. In addition, whenever a new ISLM is minted on the network, 10% is sent to the Evergreen DAO, a decentralized autonomous organization that invests the proceeds into Islamic charities or online projects. The contribution of funds to charity follows zakat — one of the pillars of Islam.

Islamic cryptocurrencies need the right design

Sharia-compliant cryptocurrencies are a relatively new and evolving development in digital currencies.

While designed to comply with the principles of Islamic finance, they are not without controversy, and there is an ongoing debate among Islamic scholars about whether the cryptocurrencies are truly compatible with Shariah. Andrey Kuznetsov, a co-founder of the Haqq Network, told Cointelegraph:

“Developing a Bitcoin environment that supports Sharia law is also difficult. This involves forming alliances with financial institutions, states, and other parties to ensure that the coin is broadly recognized and can be used per Islamic ideals.”

One concern from the perspective of Islamic financial scholars is the issue of crypto as a speculative investment — which is not permitted as it contains “gharar” — meaning “uncertainty, hazard or risk,” or “the sale of what is not present.”

Mohammed AlKaff AlHashmi, a co-founder of Islamic Coin, told Cointelegraph, “Sharia prohibits and treats as void transactions that rely on chance or speculation rather than an effort to produce a return.”

However, he added, “This principle does not prohibit commercial speculation in a business or trading transactions, as Sharia laws are smart and flexible enough to adopt tech changes in every era.”

According to AlHashmi, a cryptocurrency can comply with Islamic law if “developed with the right intentions, for example, actual utility,” rather than “purely for trading or speculation.”

As such, whether a coin can be considered halal or permissible comes down to a matter of design, according to Kuznetsov. “The use and architecture of a cryptocurrency are the determining factors in whether or not it complies with Sharia law,” he said.

He pointed to cryptocurrency use cases, including payment or value storage, which could be more easily considered Sharia-compliant.

Stablecoins, for example, can be seen as a form of asset-based financing, which is a principle of Islamic finance. Stablecoins like USD Coin (USDC) and Tether (USDT) are backed by real-world asset reserves. Some cryptocurrencies have even been created specifically for Islamic finance, such as OneGram, which is backed by gold reserves.

Kuznetsov concluded, “While there are challenges to creating and adopting Sharia-compliant coins, we can overcome these challenges with the proper mix of instruction, legislation and technical ingenuity.”

Expanding access to crypto

When it comes to the benefits of Sharia-compliant cryptocurrencies, there is potential for attracting additional users from countries where Islam is the predominant religion since it would reduce any concerns religious investors may have about cryptocurrency.

AlHashmi said, “Increasing Muslims’ access to financial services is one of the possible benefits of cryptocurrencies that comply with Sharia law. In addition, sharia-compliant cryptocurrencies may provide a mechanism for Muslims who have been denied access to conventional banking to conduct financial transactions in accordance with their religious views.” He continued to say:

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“More capital investment in Islamic banking might also be a favorable outcome. To the extent that cryptocurrencies can be made Sharia-compatible, they may be able to entice Muslims looking for investments that respect their religious principles. Because of this, there may be greater progress and expansion in the Islamic finance industry, which is good for the economy as a whole.”

As the financial world continues to evolve and new technologies emerge, it will be important for Muslim investors to carefully consider the compatibility of these new developments with the principles of Islamic finance, and ensure that they align with this system’s ethical and social goals.

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Death in the metaverse: Web3 aims to offer new answers to old questions

As contemporary society continues to digitize, life in the metaverse raises the same timeless questions about what happens after death.

The age-old question of “what happens after we die” is one humanity has grappled with for millennia. Religions, philosophers and thought leaders have put forth theories about each person’s fate beyond life on earth. Until now, no factual, science-based conclusion has provided a satisfying answer.

Psychologists have understood that the fear of death — or the realization of mortality — is a major motivator of human action. Developments such as cloning and creating virtual worlds, which were previously science fiction, have come to reality, perhaps as another scramble to answer this question — or even defeat death.

Now, in the age of the metaverse, humans are the architects of a new digital world and, therefore, a new digital life. In the Web3 space, the metaverse has garnered much attention from outside investment and increased participation from legacy companies. The metaverse sector will have an estimated value of $5 trillion by 2030.

Many believe that the metaverse will reshape how social life is structured.

This new genesis of digital life naturally brings out the same timeless questions — with a twist. If life is reinvented in digital reality, will death also be different? Specifically, what happens after we die in the metaverse as humans and avatars?

What happens when we die digitally?

The existential question of what happens after we die remains unanswerable regarding our souls’ final or next destination. However, cultures worldwide have different ways of handling death-related ceremonies, which is the human experience of deciding what happens to our bodies after death.

As more people continue to digitize their identities, create avatars in virtual worlds and hold digital assets, the question of what happens after death reappears.

The introduction of social media was one of the earlier instances of humans having to deal with a digital identity after death.

At Facebook, for example, a user’s profile becomes “memorialized” as a “place for friends and family to gather and share memories after a person has passed away.” It also serves as a security feature to prevent any future logins.

Facebook’s parent company Meta has been actively pursuing metaverse development. Mark Zuckerberg, the company’s founder, made an explainer video for Meta’s metaverse in October 2021.

While the clip didn’t explicitly mention death, users began asking the death in the metaverse question. Shortly after, a dystopian meme circulated on social media with a quote attributed to Zuckerberg: “If you die in the metaverse, you die in real life.”

Nonetheless, founders and executives of metaverse platforms are toying with the idea of death as digital reality develops. 

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Frank Wilder, the co-founder of metaverse platform Wilder World, told Cointelegraph that as we build sacred places within the metaverse and create new avatar versions of ourselves, the concept of “dying” is no longer limited to the death of a physical body:

“In this digital world, we have the ability to imagine new forms of existence after death, such as the preservation of a person’s digital consciousness or the creation of a virtual memorial.”

Wilder said that honoring the “sacredness of life is a delicate exploration,” and humans will inherit various avenues to choose how they would like to honor their life.

Cemeteries in the sky

For Mariana Cabugueira, the lead architect and urban planner of Wilder World’s first digital city, Wiami, this “new dimension of reality” invites a fresh approach to preserve legacies.

Take the concept of cemeteries, for example. In her view, metaverse cemeteries will be less like graveyards and more like designated memorial spaces with capsules that hold memory and soul, created by the owner for digital rest.

“These digital capsules share how we want to be remembered and honored, tell our story, and convey the warm feeling of a soul.”

Although avatars do not age, the mind behind the avatar can supersede the digital character and deserves closure and celebration, Cabugueira said, adding, “memory-capsule cemeteries will be places for life closure, for ending our characters — a self we departed from — or a stage of life we are no longer in.”

A memorial stone from Remember, an ecosystem that allows users to mint memorials for important life events. Source: Remember

In Wilder World, Cabugueira has a vision of how these spaces will visually take shape. She said these memorial spaces would be high-up “like cathedrals,” with symbolism tied to the sky and light. 

“Remembrance is no longer just a burial but a celebration of life evolving,” she said.

Ethics of digital life after death

Digital cemeteries are only one part of what happens after a digital death. A more pressing question is: What happens to our digital assets and data?

Yat Siu, co-founder and executive chairman of Animoca Brands, believes we’re still early in this discussion. He told Cointelegraph that those thinking about these things are doing so more in terms of “how custody of assets can be transferred to heirs rather than managing metaverse identity.” Siu said:

“In the metaverse, your digital persona can still have influence and impact even if it’s no longer operated by you. In fact, a digital persona might become even more influential and therefore valuable after physical death.”

Marja Konttinen, the marketing director of the Decentraland Foundation — the founding organization of the Decentraland metaverse — said that virtual worlds are often thought of as a “thing of the future;” however, they can also be a powerful tool as windows into the past.

Konttinen highlighted that a digital twin that continues life after its users’ physical death could raise ethical questions similar to those surrounding artificial intelligence and deep fakes.

“It certainly opens up the possibility of creating a permanent virtual mausoleum of our memories and experiences, maybe in the form of a NPC [non-player character] that looks and speaks like us, forever living in the metaverse,” she said.

‘Thanotechnology’ and ‘dremains’

Death in digital reality has united emerging technologies with older fields of study surround death and grieving.

Cole Imperi is a thanatologist — a specialist in understanding death, dying, grief and bereavement, derived from the Greek word for death, “thanatos” — and founder of the School of American Thanatology. She told Cointelegraph that there is a subfield in thanatology called “thanotechnology” that focuses on the intersection of her field and technology.

She told Cointelegraph that digital spaces could offer more ways to “seamlessly connect the dead with the living,” which physical spaces don’t have:

“The digital afterlife offers more opportunity for continued bonds with our deceased loved ones and, I believe, also houses the greatest opportunity for advancement in how we memorialize and remember our loved ones.”

In 2009, Imperi even coined the term “dremains,” which refers to the digital remains people leave behind online after death. Imperi helps run the ThanaLab, which monitors “online memorialization patterns and developments related to user death.”

She said the digital death of users is becoming more prevalent, and it’s only natural to bring this aspect of our physical lives into a digital space.

Do we have answers?

The metaverse has been a long time coming. In 1992, the American sci-fi writer Neal Stephenson first coined the term metaverse, even before the existence of any of the platforms we have today.

That said, even now, as we have more tangible ideas of the metaverse and its capabilities, it is still in its infancy. This means that important concepts to humanity that have a place in the physical world, such as death, are still taking shape digitally.

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Digital architects like Mariana Cabugueira are now reenvisioning the future of digital cemeteries, and researchers like Cole Imperi are monitoring the digital remains of human life online. 

We still may not know what happens after we die; however, in the metaverse, we’re getting much closer to the answer.

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NFT and Islamic education: A new frontier to teach religion?

In terms of whether NFTs are halaal or haram, Islam is usually taught with the intention of fitting into the world's ever-changing demands, said Shukla.

The world is in the midst of a digital revolution, and with it, the way we think about value is shifting. The application of nonfungible tokens (NFTs) to represent and transmit religious values and principles is one of the most fascinating manifestations of this new perspective.

NFT is a very new technology, but there's a lot of excitement about its potential. There's a lot of enthusiasm for the possibilities that NFTs provide in various sectors, including education and religion. The ability of NFTs to help teach and pass on religious values and beliefs is particularly fascinating.

Cointelegraph caught up with Deepali Shukla, the founder and managing director at MetaDee, a new London-based NFT marketplace that just launched exclusive handwritten Quran NFTs dating back to the beginning of Islam. The unique Quran manuscript, believed to have been composed between 632 and 1100 AD, is now kept by the Custodian Family in Saudi Arabia. The copies have been authenticated and verified by the University of Oxford's Research Laboratory for Archaeology and The History of Art after a thorough investigation.

Shukla, a long-time collector and admirer of art, told Cointelegraph that she was compelled to connect the physical and virtual realms. She noted that in the NFT realm, a digital art token serves as the equivalent of the actual artwork. While explaining the role of NFTs in Islamic societies, she highlighted that:

"Scriptures from ancient times, for example, are often heard but seldom appreciated in their fuller essence. Today, technology allows access to novel treasures from their exclusive realm, while at the same time, manifesting their goodness to the general public."

In the context of whether NFTs are halaal or haram, Shukla responded that Islam is usually taught with the goal of adjusting to the world's ever-changing demands. she referred to crescentwealth.com.au, which states that NFTs might be used as a high-tech financial remedy against inflation. Muslims, on the other hand, must keep in mind that an NFT must adhere to halal principles, she noted.

The digitalization of sacred art allows them to be readily available to the general public as well as Muslims who follow Islamic culture, according to Shukla. It aids in the dissemination of important messages from Islamic scholars, poets, and Prophet Muhammad's (PBUH) eternal teachings, she added.

"With potential to reach non-Muslims and other institutions, NFTs could be easily accessed using mobile, laptop, and a variety of gadgets."

Shukla is a believer in blockchain's potential to provide value and distribute Islamic knowledge. She said that universities may keep it on their cloud or network, while users may access such information across platforms, adding that:

"Digital learning and project sharing are inherent attributes of NFT technology. Ed-Tech lowers the cost of education, making inclusive learning easier for the underprivileged."

When asked about the potential benefit of properly utilizing NFTs for the Islamic community, Shukla said the NFT age appears to spell good times for the Islamic community. She cited MetaDee's NFT version of the Holy Quran's handwritten manuscripts from 1,500 years ago. She called it "the equivalent of entering a gold mine of cultural history," and noted that it wouldn't have been possible without being digitized and tokenized.

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Major Indonesian Islamic organization declares crypto ‘haram’ — or forbidden

The Indonesian Islamic group NU says crypto is too volatile to be legal under Islamic law.

The East Java branch of one of Indonesia’s largest Islamic organisations Nahdlatul Ulama (NU) has issued a Fatwa deeming the use of cryptocurrency ‘haram’, or forbidden, under Islamic law.

A Fatwa is a nonbinding legal opinion on Islamic law, which is reached through a discussion called a bahtsul masail. Representatives from the Nahdlatul Ulama (PCNU) Branch Management and several Islamic boarding schools throughout East Java attended the bahtsul masail.

Interest in cryptocurrency has surged in Indonesia over the past year. Earlier this month, a report by Coinformant reported that Indonesia saw a massive 1,772% increase in the number of people engaging with articles about crypto during 2021.

Indonesia is home to the largest population of Muslims in the world, and has a booming crypto industry. According to the Indonesian Trade Ministry, the nation had around 6.5 million crypto investors by May this year, overshadowing the 5.7 million retail investors registered with the Indonesia Stock Exchange (IDX).

An announcement published on the website of the East Java Nahdlatul Ulama branch on October 24,  quotes chairman Kiai Azizi Chasbullah as saying:

“The participants of the bahtsul masail have the view that although the government recognises cryptocurrency as a commodity, it cannot be legalized under Islamic sharia law.”

The group came to the conclusion that cryptocurrency was deemed haram because it involves too much speculation, and therefore can’t be used as a legitimate investment.

“Based on several considerations, including the prevalence of fraud, it is considered unlawful,” said a representative from the Lirboyo Islamic Boarding School, Kediri.

Some Muslim scholars believe that cryptocurrency is similar to gambling, which is prohibited under Islamic religious law. However, opinions vary and other Islamic organizations around the world say that Islamic law permits cryptocurrency.

Last year the Malaysian authority that oversees compliance with Islamic law in finance announced that it would permit digital asset trading.

There are also efforts currently underway in Australia to build the world’s first Sharia-guided decentralized finance (DeFi) platform to navigate a course between the advantages of DeFi and the beliefs of Islamic finance.

Read more: Report: Indonesia leads global surge in interest in crypto

In September, the Minister of Trade Muhammad Luthfi told local media that Indonesia didn’t plan to follow China’s footsteps and impose a ban on cryptocurrency transactions, mining or trading.

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Religious Ban on Cryptocurrencies Provokes Social Media Reproach in Ingushetia

Religious Ban on Cryptocurrencies Provokes Social Media Reproach in IngushetiaA decision by a prominent religious body in Ingushetia to prohibit dealings with cryptocurrency has sparked controversy in the predominantly Muslim Russian republic. Critics have taken to social media to express their disagreements with the ban, pointing out that the treatment of bitcoin in Islamic jurisdictions is not one-sided. Islamic Cleric Explains Reasoning Behind Crypto […]

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