The Power of Jaiz Crypto: Finance without Interest

As Muslims across the world celebrate Ramadan, the spirit of charity and generosity takes center stage. Contributing Zakat (charity) is highly emphasized during this month, but it must come from a lawful and legitimate source of wealth. Therefore, earnings from interest (Riba), speculation, gambling, cheating, or businesses involving prohibited items such as alcohol are strictly forbidden and cannot be used for charity.

While gambling, cheating, and speculation can be identified and avoided, interest (Riba) remains a challenge, as it is deeply embedded in traditional banking and everyday financial transactions. From savings accounts to business loans, interest is woven into the banking system, making it difficult for many Muslims to access essential financial products while staying true to their faith.

Can Interest-Free Finance Even Exist?

Well, many Islamic finance banks are trying to fill this gap by providing Sharia-compliant alternatives to conventional banking products, yet they often fall short. Consider Bangladesh, where a leading Islamic bank failed to uphold Shariah principles, exposing gaps in the system and causing significant financial repercussions.

Nearly 800 million Muslims – almost half of the 1.7 billion global population -remain unbanked, with women making up the majority. The issue isn’t just about limited access to trusted banks or affordable financial services; many struggle to find transparent and ethical financial products that genuinely align with Sharia principles. But let’s understand why interest (Riba) is prohibited in Islam.

Riba (interest) is strictly prohibited in Islam, with multiple Quranic references warning against its exploitative nature. It states that riba-based transactions and businesses create unjust systems because wealth in this system is accumulated through the exploitation of those in need.

The absence of riba-free financial products and the large unbanked Muslim population highlight the global demand for Jaiz (permissible), Sharia-compliant, truly digital financial solutions that are fair, crossborder and aligned with Islamic principles. This growing demand is reflected in the Islamic finance industry, which today stands at $3.9 trillion, spanning more than 80 countries.

What is Jaiz Finance?

Jaiz is an Arabic word that means “permissible.” In an Islamic context, money is neither halal nor haram; it is either Jaiz (permissible) or not Jaiz (not permissible). Jaiz Finance is an Islamic finance concept that follows a set of Islamic principles, enabling practicing Muslims to access ethical and Shariah-compliant financial products.

While both conventional financial systems and Islamic banks have struggled to achieve true financial inclusion worldwide, crypto—being digital, decentralized, and borderless has emerged as a viable alternative. However, with over 13,000 cryptocurrencies in existence, the value of many is driven purely by speculation. Since Islam prohibits transactions based on speculation, a significant gap remains for millions of unbanked individuals seeking Shariah-compliant financial solutions. Caiz is redefining crypto through a Jaiz approach, offering a financial system that aligns with Islamic principles.

Caiz: Making Jaiz Crypto a Reality

To bring true digital financial inclusion, Caiz is building the world’s largest and first Fiqh-compliant financial ecosystem, powered by robust blockchain technology. The Caiz ecosystem is secure, borderless, trusted, and transparent. Unlike other cryptocurrencies that focus solely on decentralization, Caiz crypto products seamlessly integrate Islamic principles with a decentralized ledger system.

They are built on a distinctive DeCe Model, which integrates a centralized consensus mechanism with decentralized systems. While decentralization ensures transparency and trust in transactions, the centralized layer guarantees compliance with Shariah principles. This centralized framework includes a Fiqh-compliant governance mechanism known as the IFBA Agreement (Islamic Federated Byzantine Agreement), where every operation is overseen and governed by a verified group of scholars. The IFBA and DeCe model emphasize a system that is completely free from Riba (interest) and is based on profit-sharing and charitable mechanisms. It further eliminates speculation (Maiser) and uncertainty (Gharar) by being built on real assets, with value tied to tangible assets such as gold. These practices make Caiz a Jaiz crypto, aligning with Islamic financial principles.

Moreover, a KYB (Know Your Business) protocol is being designed for compliance purposes within the Caiz Blockchain to host businesses and protocols. This approach ensures that all products and businesses within the Caiz ecosystem remain free from illicit activities, strictly adhering to Islamic principles.

Final Thought

While the debate on whether crypto can be Jaiz continues, projects like Caiz are actively shaping a financial ecosystem that is not only Sharia-compliant but also accessible, ethical, and free from Riba. Operating on interest, many conventional banking systems leave millions of Muslims unbanked. However, Jaiz crypto projects have the potential to offer the global Muslim community a viable alternative that is free from Riba and accessible to everyone.

To learn more about how Caiz is creating Jaiz crypto, visit: https://caiz.com/