Dubai launches Sharia compliant crypto assets backed with diamonds
Dubai is in the news yet again with new crypto assets backed with diamonds. The launch was on Sunday in Dubai. This crypto asset might grab the investors interest this time. The crypto assets are backed by diamonds aims to give investors who are interested in blockchain “a more secure alternative”.
Al Kasir Group under the private office of Sheikh Ahmed bin Obaid Al Maktoum have jointly initiated this venture. It gives an offer to the buyers to have tangible returns on the investments made by them.
The crypto assets can be redeemed for diamonds of the same amount.
Amit Lakhanpal, the founder of Al Kasir Group stated about the venture. He said that this was one of a kind venture that allows diamond trading. It also added it offers investors "the convenience of a digital currency with the stability of a traditional asset.” He further added, “This is a venture of traditional trading along with the latest technology, which is blockchain. “Our headquarters may be Dubai but in five years we want to rule the diamond industry.”
Al Kasir Group considers it different from cryptocurrency. Mr. Lakhanpal added, “Please do not confuse these blockchain assets with cryptocurrencies. These assets will not be redeemable against cash, they are only redeemable on the inhouse portal that the company will launch on August 16.”
The name of the crypto assets unveiled at the event were Al Mas, Al Haqeek and Al Falah. Al Haqeek can be redeemed against precious gems. Al Falah can be redeemed against perfumes for e.g. Oud, Attar, and Bakhoor.
Moreover, the Initial Crypto Asset opening (ICAO) will have several phases of sale starting on Sunday. It will end in mid August. The investors can spend minimum $250. It will be equivalent to 25 blockchain assets. Each blockchain asset will be $10. The maximum amount spent will be $250,000.
Furthermore, once the offering phase is done, investors can exchange their blockchain assets with diamonds of similar value. The diamonds will be certified from Indian Gemological Institute. It also includes gems and perfumes depending on the crypto asset purchased by them.
It is also being that the company plans to open 1,000 physical stores for customers across Gulf, south east Asia, Europe and UK. The crypto assets could be purchased over the counter.
The most interesting feature about the crypto assets is that they are Sharia compliant as they are backed with a tangible asset.
Dubai has been amongst the countries who are open to explore about Blockchain’s potential. Earlier, there was a discussion regarding adopting Blockchain in the ’UAE Blockchain Strategy 2021’.
Image Credit: Courtesy: Al Kasir Jewellery Group