Sharia Compliance

ISLAMIC BANKING ON THE BLOCKCHAIN

Patent 2017100426 relates to Bankcoin Reserve’s Islamic Banking Sharia Compliant Blockchain Innovation. This patent is quite extensive as it includes aspects of the six patents granted previously. It covers Sharia compliant innovation models of the following:

1. Savings and Deposits – Patent 2014101156
2. Loan and Finance – Patent 2014101277
3. New Monetary System – Patent 2014101324
4. Private Placement or High Yield Investment – Patent 2016100394
5. Stock and Bond Management – Patent 2016100178
6. Franchise Innovation – Patent 2017100375

Islamic banking or sharia compliant finance prohibits Riba or Usury, which are both defined as ​unjust, exploitative gains made in trade or business, under Islamic law. ​The acceptance of interest or fees for loans of money or investments in businesses that provide goods and services considered contrary to Islamic principles are also haram, which means: ‘sinful or prohibited.’

This patented innovation addresses all issues in the current banking and financial sectors that conflict with Sharia compliant finance and brings Islamic Banking into the 21st century via the Blockchain.

It provides new methods for banks, financial institutions and monetary funds to provide ethical loans and finance, including Islamic deposits and finance with ​no riba, interest or usury. Banks, financial institutions and monetary funds can earn revenue instead of charging interest (or usury) using an internal cryptocurrency Blockchain-dependent process that facilitates the minting of new coin and mining of transaction fees.

The Bankcoin Reserve digital wallet has a built-in block explorer so that Sharia compliant institutions can verify where customers’ transactions are coming from and going to.

This transparency is required in Islamic banking and this technology provides the proof that the transactions throughout the network are Sharia compliant to accountants, auditors, the institution and customers.

The Bankcoin Reserve Coin’s  Proof-of-Stake (PoS) feature allows only legitimate transactions utilising the transparency of the patented Blockchain and, having the secondary mining feature, replaces interest, riba and usury with actual earnings and revenue returns. Thus, prohibited aspects of the traditional finance model have been replaced with a genuine earnings revenue model.

Advantages to Sharia Compliant Financial Institutions

1. First genuine Sharia compliant banking product that eliminates riba, usury and interest.
2. Generates 10% revenue using the AAA Blockchain patented Blockchain technology.
3. New Islamic business will be drawn to the institution’s new product lines as the innovation is 100% Sharia compliant.
4. Special interest would come from a younger market as they are more likely to be attracted to cryptocurrencies.
5. For issuance of term deposits, the cost to the bank is zero, as customers’ money is used to acquire Bankcoin Reserve Coin.
6. For issuance of term deposits, the Bankcoin Reserve Coin acquired will keep minting at 10% after the term deposit expires.
7. For issuance of loans, the Bankcoin Reserve Coin acquired will keep on minting at 10% after the loan has been repaid.

This is the innovation and process that the Islamic financial world has been needing for centuries and is a product that can undergo any amount of scrutiny and fully comply with the moral and ethical foundation of Sharia law principles.

Benefits of Bankcoin Reserve Applications
Memorandum of Understanding Example

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